Analysis of Mrs. Trump's involvement in the MELANIA Meme Coin fraud lawsuit
Overview of the core allegations
US First Lady Melania Trump has been implicated in a major cryptocurrency fraud class action lawsuit related to the MELANIA meme coin. The lawsuit accuses the developers of an alleged "pump and dump" scheme, manipulating the token issuance for personal gain while causing significant losses to investors.
Key allegations :
- Nature of Fraud : Suspected pump-and-dump (pump and dump) tactics
- Scale of the case : At least 15 different meme coins
- Legal Status : Melania Trump herself has not been directly accused of fraud, but is being used as "window dressing"
Core planner identity
According to legal documents, Meteora founder Benjamin Chow is accused of being the core mastermind of the cryptocurrency scam. The lawsuit documents show that Chow coordinated with his partners via Telegram to systematically launch, hype, and sell off various tokens.
Operation details :
- Using high-profile figures as "window dressing"
- Push up the price of the currency through social media publicity
- Massive selling at price peaks to take profits
- Investors lost millions of dollars
MELANIA Token Market Performance
Current MELANIA token market data shows that it has been significantly impacted by legal disputes:
| index | Numerical | Range of change |
|---|---|---|
| Current Price | $0.093 | -1.56% (24h) |
| Market capitalization | $75.29M | -19.88% (7d) |
| 24-hour trading volume | $4.83M | Large fluctuations |
| Circulating Supply | 810M MELANIA | 81% circulation rate |
Progress of legal proceedings
The class action lawsuit was originally filed in April 2025 against several meme coins, including M3M3, LIBRA, ENRON, and TRUST. On Tuesday, the plaintiff updated the lawsuit to formally include the MELANIA token in the fraud allegations.
Litigation timeline :
- April 2025 : Initial lawsuit filed, involving multiple meme coin projects
- October 22, 2025 : Litigation Update, Officially Including MELANIA Tokens
- Current Status : Class action lawsuit in progress, awaiting further court review
Risk Assessment and Impact
This lawsuit serves as a warning to the entire meme coin market, particularly those leveraging celebrity marketing. Yahoo investors should be wary of the risks of sentiment-driven cryptocurrency investments, including extreme volatility, a lack of regulation, and potential fraud.
Key risk factors :
- Legal risks : Ongoing litigation could lead to further regulatory scrutiny
- Market risk : Negative news has caused the token price to drop significantly
- Reputational risk : The involvement of high-profile individuals increases market attention and regulatory pressure.
The final outcome of this case will have a significant impact on future celebrity-endorsed cryptocurrency projects and may promote further improvements to relevant regulatory policies.