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The architects behind a virtual coin launched by US First Lady Melania Trump are now charged in legal documents of executing a fraudulent operation.

Coin Release and Price Surge

The $MELANIA coins were made available for just a few cents each on January 19th, the day before Donald Trump took office.

Alongside the First Lady's token, the former president introduced his personal token shortly prior to the swearing-in event.

In a matter of hours, the price of the $MELANIA cryptocurrency soared to nearly $14 per unit.

Rapid Decline in Price

Yet, the market price subsequently crashed with similar speed, and presently trades for less than 15 cents – below one percent of its peak price.

Meanwhile, the $TRUMP cryptocurrency reached a peak of $45.47 and currently exchanges for under six dollars.

Legal Allegations and Plaintiffs' Position

The plaintiffs claim that the token's architects planned the scheme conscious that the digital currency's value would decline sharply.

Melania Trump herself is not named in the lawsuit. Investors indicated they do not think she was culpable, but charged the digital currency firms of using her and other prominent figures as a cover for their illegal activities.

Exchange Platform Role

In newly filed federal filings, plaintiffs charge leaders of the Meteora digital asset exchange, where the First Lady's token was first exchanged, of establishing a scheme that allowed them to discreetly acquire substantial volumes of the digital token.

Their accomplices then rapidly offloaded these digital currencies, securing large returns while causing the value to crash, as stated in documents filed in New York federal court.

Broader Context

The allegations about $MELANIA have been incorporated into court cases concerning several other cryptocurrencies, which began in spring.

The Trump family has according to reports generated over one billion dollars in pre-tax earnings from multiple cryptocurrency-related ventures and firms over the last year.