In the wild west of cryptocurrency, sometimes reality is stranger than fiction. A recent legal filing has revealed a jaw-dropping saga of crypto fraud that reads like a Silicon Valley thriller, featuring none other than former First Lady Melania Trump as unwitting window dressing.

Crypto investors have launched a federal class action lawsuit against Benjamin Chow and Hayden Davis, alleging a sophisticated pump-and-dump scheme involving multiple cryptocurrencies, including a memecoin branded with Melania Trump’s name, $MELANIA.

The Celebrity Crypto Con

The lawsuit claims these crypto entrepreneurs have developed a “repeatable six-step playbook” for fraudulent token launches. Their strategy? Use high-profile names to lend credibility to their sketchy digital coins. In the case of $MELANIA, they leveraged the former First Lady’s brand to attract unsuspecting investors.

Numbers Don’t Lie

Within hours of launching, $MELANIA’s value skyrocketed twelve-fold, reaching a paper value of $1.6 billion. But here’s the kicker: before the public could even buy in, insider wallets controlled by Chow and Davis had already accumulated nearly a third of the token’s supply.

The Aftermath

As quickly as the coin rose, it crashed. Investors lost millions while the founders allegedly pocketed substantial profits. Though Trump isn’t accused of direct involvement, her name became a tool to manipulate public trust.

This isn’t just another crypto scandal, it’s a stark reminder that in the digital age, celebrity association doesn’t guarantee legitimacy. Always do your research, tech-savvy friends.