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The architects responsible for a cryptocurrency launched by US First Lady Melania Trump are now alleged in federal papers of planning a pump-and-dump scheme.

Coin Release and Value Spike

The $MELANIA coins were made available for under a dollar each on the 19th of January, one day preceding former President Trump was inaugurated.

Alongside the First Lady's token, the former president released his personal token just ahead of the inauguration ceremony.

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

Sudden Collapse in Price

Yet, the market price then collapsed almost as quickly, and currently stands at approximately a dime – below 1% of its peak price.

At the same time, the $TRUMP cryptocurrency hit a high of $45.47 and presently sells for $5.79.

Legal Allegations and Plaintiffs' Position

The claimants allege that the coin's creators planned the scheme knowing that the token's worth would decline sharply.

Melania Trump herself is not mentioned in the lawsuit. The plaintiffs clarified they do not think she was culpable, but accused the blockchain organizations of using her and other familiar faces as a facade for their illegal activities.

Trading Venue Involvement

As per fresh federal filings, investors accuse leaders of the Meteora cryptocurrency exchange, where the First Lady's token was originally listed, of setting up a scheme that enabled them to indirectly purchase significant amounts of the virtual coin.

Their accomplices then quickly resold these digital currencies, securing large returns while causing the value to crash, as stated in papers submitted in Manhattan federal court.

Wider Proceedings

The claims regarding $MELANIA have been added to judicial actions concerning various other digital currencies, which began in the month of April.

The Trump family has according to reports secured in excess of $1 billion in pre-tax earnings from various cryptocurrency-related enterprises and organizations over the last year.