Melania Trump and Milei Reportedly Exploited as Tools in $57 Million Memecoin Fraud
- A $57M memecoin fraud lawsuit accuses Meteora founder Benjamin Chow of using Melania Trump and Javier Milei as "props" to manipulate token prices via fake endorsements. - The scheme allegedly created artificial demand through insider-controlled liquidity pools, causing tokens like $LIBRA and $MELANIA to surge then collapse, wiping out investor funds. - Plaintiffs seek triple damages under RICO laws, naming co-conspirators including Kelsier Ventures CEO Hayden Davis and Jupiter co-founder Ng Ming Yeow in
A
The operation, referred to as the "Meteora-Kelsier Enterprise," allegedly used insider-controlled liquidity pools and fake endorsements. The complaint states that wallets associated with the group provided liquidity and made early trades to create the illusion of demand, enabling insiders to sell tokens at inflated prices. For instance, the $LIBRA token—marketed as a means to help small businesses in Argentina—soared after Milei’s verified X post, but plummeted within hours when deployer wallets removed $110 million in liquidity, as reported by
The lawsuit demands full restitution and triple damages under U.S. RICO statutes, citing allegations of fraud, conspiracy, and deceptive conduct. It also names Kelsier Ventures CEO Hayden Davis,
The case has attracted attention due to its political connections. Although Milei’s anti-corruption office cleared him of any ethics breaches, his initial endorsement of $LIBRA and the later removal of his post have raised questions. The updated complaint asserts that these figures “were used as props,” as noted in a
The downfall of these tokens highlights the risks within the memecoin sector, where celebrity backing can conceal manipulative tactics. Experts point out that Solana’s fast deployment features made the scheme possible, allowing insiders to control both trading and liquidity. As the legal proceedings continue, the case could lead to tighter regulations on DeFi projects and memecoins, especially those that use prominent public figures for promotion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Solana News Update: Institutions Wager on Altcoins’ 100x Growth as CPI Sparks Risk-On Market Mood
- Altcoin prices may surge as investors shift focus to U.S. CPI data and risk-on sentiment, with Solana (SOL) and Ripple (XRP) highlighted as potential 100x plays. - Coinbase's $375M Echo acquisition and Pave Bank's $39M Series A funding underscore institutional confidence in blockchain infrastructure despite market volatility. - Solana's $195 rebound, 55% transaction volume surge, and $400M staking ETF inflows position it as a high-growth altcoin amid rising institutional demand. - Fed rate cut expectatio
Asia's rapid growth in stablecoins sets technological advancement in contrast with regulatory prudence
- Kaia DLT Foundation drives Asia's multi-currency stablecoin growth amid $46T 2025 global transaction volumes, outpacing traditional payment giants. - Major players like Western Union (Solana), PayPal (Paxos) and Visa (Stellar) expand stablecoin offerings, with Visa reporting $2.5B annualized volumes in Q4 2025. - China's PBOC warns of stablecoin risks to monetary sovereignty, while Hong Kong positions itself as a digital asset hub through regulated initiatives like Red Date's cross-border solutions. - Re
Bitcoin News Update: Metaplanet Initiates Share Repurchase to Narrow Disparity Between Stock Price and Bitcoin Holdings
- Metaplanet Inc. will hold a shareholder meeting on Dec 22, 2025, to address its mNAV ratio drop below 1.0x. - The company authorized a ¥75B share buyback (13.13% of shares) funded by a $500M loan secured against 30,823 BTC ($3.5B). - New capital policies prioritize buybacks when shares trade below intrinsic value and issue perpetual preferred shares for BTC purchases. - Shares rose 2.3% after the announcement, following a 74% decline from June highs, as the firm aims to accumulate 210,000 BTC by 2027.
Ethereum Updates Today: Ethereum Holds $3,930 as Key Support Following Drop Below $4,000
- Ethereum fell below $4,000 on Oct. 28, marking a 3.59% drop and ending a five-day rally, its largest decline since October 2025. - Traders monitor $3,930 support, with breakdowns risking a test of $3,870–$3,880, while $3,945–$4,000 remains a key technical battleground. - Long-term optimism persists as Ethereum’s CD 5 Index rebounds, but near-term stability hinges on overcoming resistance near $4,000. - Upcoming Fusaka upgrade aims to boost smart contract efficiency, potentially driving ETH demand and alt
Trending news
MoreCrypto prices
More
