Investors Sue Over Alleged Pump-and-Dump of $MELANIA Token

Investors filed a lawsuit against Benjamin Chow of Meteora and Hayden Davis of Kelsier Labs for an alleged pump-and-dump scheme involving the $MELANIA token. The case was initiated in New York federal court on October 21, 2025. Melania Trump is not accused.

Scheme Across Tokens

The lawsuit describes a six-step fraudulent process applied to 15 tokens, including $MELANIA.
Steps involved pre-launch buys, celebrity endorsements, and rapid sell-offs.
Investors suffered millions in losses.
Melania Trump's name gave a false sense of legitimacy.

Token Value Drop

$MELANIA launched on January 19, 2025.
It peaked at $13.73 but plummeted 99% to $0.10 by October 22, 2025.
The lowest value recorded was $0.07554 on October 11, 2025.
Initial hype drove early gains.

Case Implications

Burwick Law is handling the lawsuit.
Lawyer Max Burwick highlighted the potential for clearer regulations on tokens.
The crypto industry and regulators are closely monitoring the situation.
No comments have been made by the defendants.