Melania Trump memecoin team ‘weaponized fame to disarm diligence’ in sprawling crypto conspiracy, alleges court filing

Melania Trump’s memecoin was just one of 15 fraudulent tokens launched as part of an elaborate scheme to trick crypto investors. That’s according to a new court filing in a putative class action lawsuit, which accuses the defendants of obtaining the first lady’s endorsement of her cryptocurrency as part of a scheme that “weaponized fame to disarm diligence.” 

The legal filing, submitted on Tuesday, is the newest update in a case that dates back to May, when the firm Burwick Law filed a complaint on behalf of investors against a host of entities that sold memecoins, or cryptocurrencies that have no inherent utility and whose value is tied to the popularity of a joke or person.

The lawsuit targets Benjamin Chow, cofounder of crypto market-making protocol Meteora, and Hayden Davis, who cofounded crypto venture capital and marketing firm Kelsier Labs. The first lady is not named as a defendant.

The duo—along with Davis’s father and brother—allegedly orchestrated a scheme where they launched memecoins, bought the tokens shortly after launch, and then sold them at peak value to unwitting investors, who were left holding cryptocurrencies that suddenly crashed in price. The $MELANIA coin reached a market capitalization of more than $1.6 billion on Jan. 20 before tanking to now around $86 million.

“Defendants portrayed each offering as a fair and decentralized product,” alleged the lawsuit. “Yet, in reality, this was a pre-engineered pump-and...