A new federal lawsuit filed in New York accuses the creators behind the MELANIA memecoin of running a coordinated pump-and-dump scheme that profited insiders and left ordinary investors with steep losses.
Key Takeaways:
- A new lawsuit claims the Melania Token team used coordinated marketing and insider trades to inflate the token’s price.
- Plaintiffs cite on-chain data showing suspicious wallet activity and timed sell-offs.
- As of this writing, MELANIA trades near $0.0952 with continued bearish momentum, according to TradingView’s real-time market data.
The complaint filed in New York federal court alleges that the MELANIA project’s developers and promoters artificially boosted the token’s value before unloading large holdings for profit. According to the filing, defendants used social media hype and influencer marketing to draw investors into the cryptocurrency, only to execute large sell-offs that triggered a sharp price collapse.
Court documents reviewed by multiple crypto news outlets describe a “coordinated marketing and trading strategy” designed to mislead investors into believing the token had sustainable growth potential. Several early backers are accused of orchestrating rapid price movements by moving funds across multiple crypto wallets and then cashing out once retail demand surged.
Legal Claims Supported by On-Chain Evidence
Plaintiffs in the case cite blockchain data showing that several wallets purchased significant quantities of MELANIA before high-profile promotional posts, then sold within hours of the token’s peak. The lawsuit also references social media campaigns involving influencers with ties to the token’s creators.
Investigative reports earlier this year identified patterns of wallet clustering and synchronized trading that allegedly align with the timeline described in the lawsuit. Legal experts note that the case could set a precedent for how civil courts handle cryptocurrency manipulation claims involving DeFi or meme-driven projects.
At press time, none of the named defendants had issued a public response to the complaint, and no criminal charges have been filed.
Melania Token Faces Price Drop Amid Legal Allegations
MELANIA token sees a continuous drop in price amid token manipulation accusations. As of this writing (11:15AM UTC), the token is trading at approximately $0.09518, showing a 4.4% price decline over the past 24 hours. Intraday highs were seen around $0.1058 while intraday lows went near $0.9436, according to CoinGecko.
Technical charts on TradingView show the Relative Strength Index (RSI) hovering in the low 40s, suggesting sustained bearish pressure. The token remains far below its launch highs, and the lawsuit appears to have rekindled investor skepticism across social media platforms and crypto exchanges.
Broader Implications for the Meme Coin Market
This scenario highlights growing regulatory and legal scrutiny toward meme-driven cryptocurrency projects. Experts argue that celebrity-linked tokens often carry heightened risks, particularly when developers retain disproportionate supply control.
Analysts add that the MELANIA lawsuit may prompt regulators to demand greater transparency from token issuers, especially around wallet disclosures and influencer partnerships. Similar pump-and-dump cases have emerged across crypto investments tied to pop culture or political figures, reflecting ongoing challenges in protecting investors within largely unregulated digital markets.
What’s Next?
While the immediate market impact remains contained, the lawsuit could influence future token launches and investor behavior across the meme coin ecosystem. If the coordinated manipulation allegations were proved by the court, the case could strengthen calls for federal oversight of crypto marketing and trading practices.
As of the moment, experts and analysts caution traders and investors particularly in engaging with low-liquidity meme tokens as it mostly relies on hype rather than clear fundamentals.
Summary
A New York federal suit alleges MELANIA’s creators ran a pump-and-dump using influencer hype and timed wallet sales. RSI sits in the low 40s and price remains weak; the case could shape future oversight of celebrity-linked tokens and disclosure practices.
