Melania Trump Used as ‘Window-Dressing’ in Elaborate Memecoin Fraud, Legal Filing Claims
A cryptocurrency received his doctorate in January by US first lady Melania Trump was part of a sophisticated fraud that “used celebrity association and 'borrowed fame' to sell legitimacy to unsuspecting investors,” a new legal filing said.
In April, crypto investors filed a federal class action lawsuit against Benjamin Chow, co-founder of crypto exchange Meteora, and Hayden Davis, co-founder of crypto venture capital firm Kelsier Labs, among other defendants, accusing them of a multimillion-dollar fraud involving one memecoin, $M3M3.
Prosecutors later filed an amended complaint, expanding the allegations to include racketeering activity. They alleged that the pair had colluded to rig the market for $LIBRA, a currency PhD by Javier Mileipresident of Argentina, which collapsed in value shortly after launch.
On Tuesday, the plaintiffs sought the court's permission to file yet another amended complaint, based on alleged information provided by an anonymous whistleblower. With Chow as the “commander,” the pair launched, pumped and dumped at least 15 cryptocurrencies, the proposed second amended complaint alleges, including $MELANIA. The scheme is believed to have caused millions of dollars in losses to unwitting investors.
Trump, who is not a named defendant in the lawsuit, was used as “window dressing for a crime committed by Meteora and Kelsier,” the proposed second amended complaint alleges. The filing further states that the prosecutors do not allege that Trump or Milei “operated the scheme.”
“This case may clarify the basic expectations for token launches and disclosures in the US. We understand that many in the crypto industry and regulatory community are watching closely,” says Max Burwick, senior managing partner at Burwick Law, the law firm representing the plaintiffs.
The White House, Chow and Davis did not immediately respond to requests for comment.
By the time Chow and Davis launched $MELANIA in January, they had refined a “repeatable six-step 'playbook' for pump-and-dump fraud,” the investors claim.
According to the proposed second amended complaint, Meteora controls the technical infrastructure, while Kelsier provides the necessary capital and orchestrates the promotional campaign, relying heavily on credibility borrowed from public figures or brands. Together, according to the filing, they effectively control a network of “sniper” crypto wallets that pick up large amounts of coins at artificially discounted prices, then dump them on the market as regular investors pile in.
“I'm going to try to tell all my friends early,” Davis told an acquaintance prior to the launch of $MELANIA, in a private exchange that is in redacted form as an exhibit in the lawsuit. “I'm about to launch the biggest token ever lol.” (It is unclear whether Davis was referring to $MELANIA or $LIBRA.)
