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The designers responsible for a digital token introduced by US First Lady Melania Trump are now alleged in federal papers of executing a fraudulent operation.

Coin Release and Price Surge

The $MELANIA tokens were released for a minimal price each on the 19th of January, the day before Donald Trump assumed the presidency.

Alongside the Melania cryptocurrency, Donald Trump released his $TRUMP coin shortly prior to the inauguration ceremony.

Shortly after launch, the market value of the $MELANIA coin soared to $13.73 per coin.

Rapid Decline in Value

However, the price then collapsed with similar speed, and presently trades for less than 15 cents – less than 1% of its peak price.

In parallel, the $TRUMP coin achieved a maximum of over forty-five dollars and now trades for $5.79.

Legal Allegations and Investors' Arguments

The plaintiffs assert that the currency's developers organized the operation conscious that the token's worth would decline sharply.

Melania Trump personally is not included in the court case. Claimants clarified they do not consider she was at fault, but accused the blockchain organizations of using her and other familiar faces as window dressing for their illegal activities.

Trading Venue Involvement

As per fresh federal filings, plaintiffs charge officials of the Meteora trading platform, where $MELANIA was initially traded, of creating a scheme that enabled them to discreetly acquire large quantities of the digital token.

Their accomplices then promptly liquidated these digital currencies, earning significant gains while leading to the price to plummet, according to documents filed in New York federal court.

Wider Proceedings

The allegations about $MELANIA have been added to legal proceedings concerning several other digital currencies, which started in April.

The Trump family has allegedly generated more than one billion dollars in pre-tax gains from various digital currency-linked products and companies over the past 12 months.