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The designers behind a virtual coin released by US First Lady Melania Trump have been charged in court filings of orchestrating a market manipulation plot.

Initial Launch and Value Spike

The $MELANIA tokens were made available for under a dollar each on the 19th of January, one day preceding Donald Trump took office.

In addition to the Melania cryptocurrency, the former president introduced his personal token just ahead of the inauguration ceremony.

Shortly after launch, the price of the $MELANIA coin soared to nearly $14 per coin.

Rapid Decline in Value

However, the value then collapsed with similar speed, and currently stands at approximately a dime – under a fraction of its maximum worth.

Meanwhile, the $TRUMP cryptocurrency achieved a maximum of $45.47 and presently sells for $5.79.

Court Claims and Investors' Arguments

The claimants assert that the token's architects planned the operation conscious that the digital currency's value would crash.

Melania Trump herself is not included in the lawsuit. Claimants stated they do not consider she was at fault, but accused the digital currency firms of exploiting her and other prominent figures as a facade for their fraudulent schemes.

Exchange Platform Involvement

In newly filed federal filings, investors charge officials of the Meteora cryptocurrency exchange, where Melania's coin was initially traded, of setting up a scheme that enabled them to indirectly purchase substantial volumes of the digital token.

Their partners then quickly resold these digital currencies, securing large returns while triggering the price to plummet, per records entered in New York federal court.

Broader Context

The claims concerning the First Lady's coin have been incorporated into court cases involving several other virtual tokens, which began in spring.

The Trump family has reportedly earned in excess of one billion dollars in pre-tax gains from multiple cryptocurrency-related products and companies over the past 12 months.