Melania Trump’s foray into the cryptocurrency world has taken a dramatic turn, as a newly filed lawsuit in Manhattan federal court accuses the creators of her namesake digital coin, $MELANIA, of orchestrating a classic pump-and-dump scheme. The legal action, which landed in court on Tuesday, alleges that executives at Meteora, the crypto exchange where the token first launched, manipulated the market to their own advantage, leaving ordinary investors with devastating losses.
The $MELANIA coin, which debuted on January 19, 2021—just one day before Donald Trump’s inauguration—was one of several Trump-themed tokens that briefly soared in value before crashing spectacularly. According to court documents cited by both the Financial Times and the San Diego Post, the token opened at only a few cents but, in a matter of hours, rocketed to $13.73. By week’s end, however, it had plummeted to roughly 10 cents—a drop of more than 99 percent. Its companion coin, $TRUMP, also suffered a precipitous fall, tumbling from a peak of $45 to around $5.79.
Plaintiffs in the case allege that the architects of these coins “knew the value would plummet” and used the Trump family’s high-profile name to fuel a speculative frenzy among retail investors. The court filing pulls no punches, stating, “They used Melania Trump and other recognizable figures as window dressing to lend credibility to what was essentially a fraud.” The complaint specifically names executives at Meteora for allegedly buying up large quantities of the token immediately after its release, then reselling their holdings as prices soared. In doing so, they are accused of pocketing millions of dollars while small investors were left holding the bag as values collapsed.
What’s particularly striking about this case is the intersection of celebrity branding and financial speculation. Pump-and-dump schemes are nothing new in the cryptocurrency world: promoters hype a digital asset, drive prices sky-high through coordinated trading, then sell before the inevitable crash. But as analysts quoted by the Financial Times point out, the use of political celebrity branding in this instance added an extra layer of credibility—one that, for many small investors, blurred the already hazy line between politics, fandom, and finance.
Melania Trump herself is not named as a defendant in the lawsuit, and the plaintiffs explicitly state that they do not believe she played any role in the alleged scheme. Still, her likeness and name were front and center in the marketing materials for the $MELANIA coin, lending the project an aura of legitimacy that may have enticed unsuspecting buyers. Neither the Trump family nor the Meteora platform has issued a public statement regarding the allegations as of press time.
According to reporting from the Financial Times, Trump-branded coins and crypto-linked partnerships have generated more than $1 billion in pre-tax profits over the past year alone. This staggering figure underscores just how lucrative the intersection of celebrity and cryptocurrency has become, even as it raises questions about the risks faced by ordinary investors who may be drawn in by high-profile endorsements.
The Department of Justice and the Securities and Exchange Commission have not yet announced any parallel investigations into the matter. However, some legal experts and industry analysts believe that the high-profile nature of the lawsuit could prompt regulators to examine how Trump-affiliated coins were promoted and whether investors were misled. Such scrutiny could have broad implications for the crypto industry, especially as it grapples with a reputation for volatility and opportunism.
For those unfamiliar, pump-and-dump schemes typically unfold in a predictable pattern. Promoters—often with significant holdings in a new or obscure digital asset—generate buzz through aggressive marketing, celebrity endorsements, or coordinated trading. As excitement builds, prices surge, and the promoters quietly unload their positions at the top. Once the selling begins, prices collapse, leaving latecomers with steep losses. In the case of $MELANIA, the addition of a former First Lady’s name to the mix appears to have made the scheme all the more enticing, if the allegations hold true.
According to the court filings, the plaintiffs argue that the creators behind $MELANIA and $TRUMP “used the Trump family’s name recognition to fuel a speculative frenzy.” The complaint continues, “They used Melania Trump and other recognizable figures as window dressing to lend credibility to what was essentially a fraud.” These statements, cited by both the San Diego Post and the Financial Times, paint a picture of calculated exploitation, where celebrity status was leveraged to generate excitement and, ultimately, to facilitate an alleged financial swindle.
It’s worth noting that the cryptocurrency industry has long been plagued by similar schemes. What sets this case apart is the involvement—at least in terms of branding—of a figure as prominent as Melania Trump. For many small investors, the use of her name may have signaled a degree of legitimacy or institutional backing that simply wasn’t there. As one analyst told the Financial Times, “The political celebrity branding added an extra layer of credibility for investors.”
The fallout from the $MELANIA coin’s collapse has been swift and severe. Many retail investors who bought in at the peak have seen their holdings reduced to a fraction of their original value. The broader crypto market, meanwhile, continues to wrestle with issues of transparency, regulation, and trust—challenges that are only magnified when high-profile personalities become involved.
Despite the magnitude of the losses and the attention-grabbing nature of the lawsuit, Melania Trump’s legal team has remained silent, as have the executives at Meteora. The absence of public comment from either party has fueled speculation about what, if anything, might come next. Will regulators step in? Will other celebrity-backed coins face similar scrutiny? For now, those questions remain unanswered.
What’s clear, however, is that the $MELANIA coin saga serves as a cautionary tale for both investors and the crypto industry at large. The blending of personality, politics, and speculative finance creates a volatile mix—one that can enrich a few while devastating many. As the lawsuit winds its way through the courts, it stands as a stark reminder: in the world of digital assets, not everything that glitters is gold, and even the most recognizable names can be used to mask risk and amplify hype.
