First lady Melania Trump was allegedly used as “window dressing” in a multi-million-dollar memecoin scheme that deceived investors and enriched its crypto creators, according to a lawsuit filed in federal court.
The suit involves the $Melania coin, which the 55-year-old first lady promoted to her social media on the eve of Donald Trump’s second presidential inauguration in January, writing, “The Official Melania Meme is live! You can buy $MELANIA now.”
Many of Trump’s supporters purchased the coin, pushing it to trade at an all-time high price of $13.73 apiece. $Melania was trading at less than 10 cents per coin by Wednesday—a staggering crash in value.
Investors in the coin filed a federal class action lawsuit in April against Benjamin Chow, co-founder of crypto exchange Meteora, and Hayden Davis, co-founder of crypto venture capital firm Kelsier Labs, among others, WIRED reported Tuesday.
The plaintiffs asked to file an amended complaint this week, accusing Chow of acting as a “commander” who “launched, pumped, and dumped” at least 15 crypto coins, including $Melania, the magazine reported. The suit alleges they made millions in profit.
The first lady is not named as a defendant in the suit and has not been accused of any wrongdoing. However, she was separately sued Wednesday by Trump biographer Michael Wolff for allegedly trying to stifle “legitimate inquiry” into Jeffrey Epstein.
The crypto lawsuit made clear that Melania is not among its targets. It suggested her team was deceived, just as investors were.
“Melania Trump’s team, to the extent it granted any permission, did so without knowledge of the fraud, the insider rigging, or the deceptive launch mechanics. Had they been aware that the project was part of a coordinated criminal scheme, they would have rescinded any consent immediately.”
The Trump family has been heavily involved in crypto dealings since last summer. The Wall Street Journal reported in September that the family has made $5 billion in profit from the industry. In May, Trump hosted holders of his own memecoin, $Trump, for dinner at his golf club in Virginia.
The White House did not respond to a request for comment.
