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The developers responsible for a digital token launched by First Lady of the United States Melania Trump are now alleged in court filings of orchestrating a market manipulation plot.

Initial Launch and Price Surge

The $MELANIA tokens were issued for just a few cents each on January 19th, one day preceding former President Trump was inaugurated.

Together with the $MELANIA coin, the former president released his own digital currency a few hours before the inauguration ceremony.

Shortly after launch, the value of the $MELANIA token soared to over $13 per token.

Sudden Collapse in Value

However, the price then collapsed just as rapidly, and currently stands at approximately a dime – below one percent of its highest value.

In parallel, the $TRUMP token reached a peak of over forty-five dollars and currently exchanges for $5.79.

Legal Allegations and Plaintiffs' Position

The investors allege that the coin's creators planned the operation knowing that the digital currency's value would plummet.

Mrs. Trump herself is not named in the legal action. The plaintiffs clarified they do not think she was culpable, but accused the blockchain organizations of using her and other prominent figures as window dressing for their criminal operations.

Trading Venue Role

As per fresh court papers, plaintiffs allege leaders of the Meteora trading platform, where $MELANIA was first exchanged, of establishing a plan that enabled them to indirectly purchase large quantities of the cryptocurrency.

Their accomplices then quickly resold these digital currencies, earning significant gains while leading to the market to collapse, per documents filed in New York federal court.

Broader Context

The claims about $MELANIA have been incorporated into court cases concerning various other digital currencies, which began in April.

Trump-associated entities has allegedly generated in excess of one billion dollars in pre-tax gains from multiple blockchain-associated enterprises and organizations over the last year.