First Lady Melania Trump has found herself at the center of a federal lawsuit involving a controversial memecoin scheme, raising questions about the implications of her promotional efforts for the $Melania coin. The lawsuit, filed in federal court, alleges that investors were misled in a multi-million-dollar scheme that primarily benefited its creators, while labeling her involvement as mere “window dressing.”
The $Melania coin was launched with a promotional push from the First Lady herself, who announced on social media just before President Donald Trump’s inauguration that the “Official Melania Meme” was live and available for purchase. This endorsement prompted a surge in purchase activity among Trump supporters, driving the coin’s value to a peak of $13.73. However, the coin’s value plummeted to below 10 cents recently, highlighting a dramatic fall from grace.
Investors impacted by the scheme filed a class action lawsuit in April against Benjamin Chow, co-founder of crypto exchange Meteora, and Hayden Davis, co-founder of Kelsier Labs, among other entities. The updated complaint accuses Chow of orchestrating a series of fraudulent activities related to multiple cryptocurrencies, including $Melania. According to the suit, the plaintiffs claim that these actions resulted in significant profits for the defendants at the expense of unsuspecting investors.
Although Melania Trump is not named as a defendant in the lawsuit and has not been accused of any wrongdoing, her involvement in promoting the coin complicates her public standing. A separate legal action has emerged from Michael Wolff, a biographer of Donald Trump, who accuses Melania of hindering legitimate inquiries into Jeffrey Epstein.
The current lawsuit, however, emphasizes that Melania’s team may have been misled as much as the investors were. It asserts that if her team had been aware of the alleged fraudulent activities connected to the coin’s launch, they would have immediately withdrawn any support.
The Trump family has been actively participating in cryptocurrency ventures, with reports indicating that they have garnered $5 billion in profits from the industry since last summer. Notably, in May, Donald Trump hosted dinner for holders of his own memecoin, $Trump, at his Virginia golf club.
As the situation unfolds and legal proceedings continue, the White House has not responded to requests for comment regarding these allegations or Melania Trump’s involvement in the crypto controversy. The case not only highlights the volatility of the cryptocurrency market but also raises significant questions about the accountability of public figures in promoting investment opportunities.
