Investors in a Melania Trump-themed cryptocurrency promoted by first lady Melania Trump are suing its developer for fraud.
The first lady’s name and the specific meme coin she plugged are part of a revised version of the lawsuit (first filed in April and already amended once) that the plaintiffs asked for permission to file this week.
The investors who were allegedly burned have not accused Melania Trump of any wrongdoing, nor has she been named as a defendant. They allege instead that she was used as a “window” in a scheme to defraud buyers.
But while the president leads industry policy, Congressional Democrats’ efforts to criticize the first lady for promoting her eponymous cryptocurrency (a meme coin called $MELANIA) quickly fell short when she accused her husband of corruption over his family’s crypto empire earlier this year.
As WIRED reports, plaintiffs this week asked a judge for permission to file an update to their ongoing lawsuit accusing crypto-based company co-founders Benjamin Chow and Hayden Davis of leading a pump-and-dump scheme to fraudulently misrepresent the value of numerous cryptocurrencies, including $MELANIA and $LIBRA, cryptocurrencies promoted by Trump supporters. President Javier Millay of Argentina.
The plaintiffs on Tuesday asked the court for permission to file a further amended complaint based on information allegedly provided by an anonymous whistleblower. The proposed Second Amended Complaint alleges that Chau acted as a “commander” and the two minted, pumped, and dumped at least 15 pieces of virtual currency, including $MELANIA. The scheme allegedly cost unsuspecting investors millions of dollars in losses. The draft document alleges that Trump, who is not named as a defendant in the suit, was used as a “window for the crime orchestrated by Meteora and Kerscher.” The filing also says the plaintiffs do not allege that Trump or Milley “manipulated the plan.”
The White House, Chow and Davis did not respond to MSNBC’s requests for comment Friday.
President Trump has not said much about Democratic corruption allegations or complaints from some in the crypto industry that he and his family are giving the industry a bad name. Asked about his coin shortly after the announcement, the president said, “I don’t know much about it other than that I launched it. I’ve heard it’s been very successful.”
The first lady endorsed $MELANIA in a post about X during its launch to coincide with her husband’s inauguration in January, and the price soared to $12.95 per coin. Earlier this month, she reposted the company’s slogan “Into the Future” featuring an image of herself.
Regardless of the nature of her involvement in $MELANIA (which was available for less than 10 cents a coin as of Friday), the ethics of her hyping meme coins from her perch as First Lady clearly violates the Code.
At the very least, if former first lady Jill Biden or former first lady Michelle Obama were somehow involved in allegations of virtual currency fraud, it is safe to assume that the story would be covered endlessly in conservative media.
Nevertheless, there seems to be a clear double standard when it comes to Melania Trump.
