Melania Trump Used as ‘Window-Dressing’ in Elaborate Memecoin Fraud, Legal Filing Claims
A cryptocurrency promoted in January by U.S. first lady Melania Trump was part of a sophisticated fraud that “exploited celebrity association and ‘borrowed fame’ to sell legitimacy to unsuspecting investors,” a new legal filing claims.
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 a single memecoin, $M3M3.
The plaintiffs later filed an amended complaint, expanding the allegations to include racketeering activities. They claimed the two men colluded to rig the market for $LIBRA, a coin promoted by Javier Milei, President of Argentina, whose value collapsed shortly after its launch.
On Tuesday, the plaintiffs asked the court for permission to file a new amended complaint, based on alleged information provided by an anonymous whistleblower. With Chow acting as “commander,” the pair launched, pumped and dumped at least 15 crypto coins, according to the proposed second amended complaint, including $MELANIA. The scheme allegedly inflicted millions of dollars in losses on unwitting investors.
Trump, who is not a named defendant in the lawsuit, was used as “a front for an organized crime by Meteora and Kelsier,” the second proposed amended complaint alleges. The filing further states that the plaintiffs do not allege that Trump or Milei “managed the scheme.”
“This case could clarify fundamental expectations regarding the launch and disclosure of tokens in the United States. We understand that many in the crypto industry and regulatory community are watching closely,” said 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 six-step, repeatable ‘play guide’ for pump-and-dump fraud, investors say.
According to the second proposed amended complaint, Meteora controls the technical infrastructure, while Kelsier provides the necessary capital and orchestrates the promotional campaign, relying heavily on borrowed credibility from public figures or brands. Together, according to the filing, they effectively control a network of “sniper” crypto wallets that scoop up large quantities of coins at artificially discounted prices, then dump them on the market as regular investors flock.
“I’m going to try to tell all my buddies about it sooner,” Davis told an acquaintance before the launch of $MELANIA, in a private exchange that appears in redacted form as an exhibit in the lawsuit. “I’m about to launch the biggest token ever created lol.” (It is unclear whether Davis was allegedly referring to $MELANIA or $LIBRA.)
