$1.6B Crypto FRAUD: Melania Trump Exploited

Federal prosecutors allege a $1.6 billion memecoin fraud scheme exploited Melania Trump’s name to devastate everyday investors—exposing the dangers of unchecked financial manipulation in today’s digital age.

Story Snapshot

Federal court filings accuse executives of orchestrating a massive pump-and-dump fraud using Melania Trump’s name.
Retail investors lost up to 98% of their investment as the $MELANIA token collapsed from its peak.
Investigators highlight systematic manipulation, with insiders controlling a third of the supply before launch.
Case intensifies calls for accountability and transparency in cryptocurrency markets, especially for celebrity-endorsed projects.

Federal Lawsuit Alleges Systematic Crypto Fraud Tied to Melania Trump’s Name

On October 21, 2025, federal court documents filed in Manhattan detailed explosive allegations against Benjamin Chow of Meteora cryptocurrency exchange and Hayden Davis of Kelsier Labs. Prosecutors claim these executives used First Lady Melania Trump’s likeness to legitimize a $1.6 billion memecoin operation—only to orchestrate an insider-driven “pump-and-dump” that left regular Americans holding the bag. The $MELANIA token, launched just a day before President Trump’s second inauguration, soared to $13.73 per coin before imploding to less than 1% of its peak value.

Legal filings describe the operation as a repeat of a six-step playbook previously used across at least 15 digital tokens. Chow and Davis allegedly coordinated networks of “sniper” wallets—specialized crypto accounts—to acquire large positions at artificially low prices well before the public had a chance to invest. By the time most investors bought in, insiders controlled nearly a third of the total token supply. The market quickly collapsed, with the price crashing from $1.6 billion in capitalization to less than $30 million—devastating countless American investors focused on securing their financial future.

Retail Investors Suffer, Insiders Profit

Ordinary Americans who put faith in the $MELANIA memecoin were wiped out, losing between 95% and 98% of their investment in a matter of weeks. Blockchain analytics reveal that team-controlled wallets moved or sold approximately $30 million in community funds without public explanation. In the days after a suspicious 21% price spike, another $1.5 million in tokens was quietly offloaded. These manipulative practices highlight the vulnerability of retail investors and the need for real transparency—especially when celebrity endorsements are used to lend credibility to speculative ventures.

Melania Trump herself, according to court filings, was not accused of wrongdoing and is described as “window dressing”—a familiar public face used to create trust in a product that insiders already planned to abandon. Her only public endorsement came months after launch, via an AI-generated video, raising further questions about the authenticity of celebrity crypto promotions and the risk posed to conservative families seeking new investment opportunities.

Pattern of Deception and Lack of Accountability

The $MELANIA token collapse is not an isolated incident. Hayden Davis, one of the central figures accused, has a documented history with failed memecoin projects—having previously been tied to the $110 million LIBRA token collapse, among others. This pattern of launching tokens, hyping them through influencer campaigns, and then selling off insider holdings is a troubling trend that erodes trust in emerging digital markets. Blockchain analyst commentary points to a severe deficit of accountability, with team wallets routinely selling millions while the public remains in the dark. These abuses threaten not only individual livelihoods but also the integrity of American free enterprise, which depends on fair play and honest markets.

As the Trump administration works to restore constitutional values and rein in the excesses of the previous era, this scandal underscores the importance of vigilance against schemes that prey on hardworking citizens. Market manipulation, unchecked by real oversight, is a direct attack on the financial security of American families—and a reminder that transparency and accountability must remain at the heart of any legitimate financial system.

Federal court proceedings may set an important precedent for prosecuting cryptocurrency fraud, particularly in cases where public figures’ reputations are exploited. The systematic manipulation of token launches, combined with the lack of meaningful response from project leaders, has intensified calls for stronger safeguards. For conservatives who value honest markets, personal responsibility, and the rule of law, this case offers a stark warning: in the new frontier of digital finance, every American must demand truth and integrity, lest the promises of innovation become tools for the next wave of fraudsters.