"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-dump operation designed to extract money from investors." The proposed amended complaint is the most in-depth narrative yet of a memecoin conspiracy that took the crypto industry by storm earlier this year and implicated not only Melania Trump but also Javier Milei, the president of Argentina."
Fifteen memecoins, including a token tied to Melania Trump, are alleged to have been part of an elaborate fraud that targeted crypto investors. The complaint names Benjamin Chow and Hayden Davis, along with Davis's family members, as orchestrators who launched tokens, purchased them post-launch, and sold at peaks to cause crashes for later buyers. The $MELANIA token briefly reached a market capitalization above $1.6 billion before collapsing to about $86 million. The amended complaint describes the offerings as misrepresented as fair and decentralized while alleging a coordinated pump-and-dump to extract investor funds, citing a whistleblower and unpublished texts as evidence.
Read at Fortune Crypto
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