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.