A new lawsuit alleges that Melania Trump’s name and likeness were exploited in a cryptocurrency “pump and dump” scheme that resulted in significant financial losses for investors in the $MELANIA token.
<p>According to the legal filing, the cryptocurrency token bearing the former First Lady’s name experienced a dramatic price spike followed by a rapid collapse, a pattern consistent with pump-and-dump schemes designed to benefit early investors at the expense of later participants.</p>
<p>The lawsuit claims that investors who purchased the $MELANIA token suffered substantial losses when the token’s value plummeted shortly after its initial surge. The plaintiffs argue that the use of Melania Trump’s name and image gave the token an appearance of legitimacy that attracted unsuspecting investors.</p>
<p>Cryptocurrency pump-and-dump schemes typically involve artificially inflating the price of a digital asset through misleading or exaggerated statements, then selling off holdings once the price peaks, leaving later investors with worthless or drastically devalued tokens.</p>
<p>The case highlights ongoing concerns about celebrity-endorsed cryptocurrency projects and the risks they pose to retail investors. Legal experts note that the use of a public figure’s name and likeness without proper authorization could constitute both civil and potentially criminal violations.</p>
<p>Neither Melania Trump nor her representatives have publicly commented on the lawsuit. The case is expected to proceed through federal court, where plaintiffs will need to demonstrate both the fraudulent nature of the scheme and the unauthorized use of Trump’s identity in promoting the token.</p>
<p>This incident adds to a growing list of cryptocurrency-related legal actions involving celebrity names and likenesses, as regulators and courts grapple with how to protect investors in the largely unregulated digital asset space.</p>
