Melania Trump, Milei Allegedly Used as Props in $57M Memecoin Scam

A class-action lawsuit filed in the Southern District of New York accuses Meteora co-founder Benjamin Chow of orchestrating a $57 million memecoin fraud, leveraging celebrity endorsements from figures like Melania Trump and Argentine President Javier Milei to manipulate token prices and defraud investors. The lawsuit, led by plaintiffs Omar Hurlock, Anuj Mehta, and John Winslow, alleges that Chow and his associates exploited Meteora's Solana-based platform to create a "fraud factory" disguised as a decentralized finance (DeFi) project, as detailed in a Bitget report. Tokens such as $LIBRA and $MELANIA surged artificially before collapsing, leaving investors with massive losses.

The scheme, dubbed the "Meteora-Kelsier Enterprise," reportedly involved insider-controlled liquidity pools and fabricated endorsements. According to the complaint, wallets linked to the group seeded liquidity and executed early trades to simulate demand, enabling insiders to dump tokens at peak prices. For example, the $LIBRA token—promoted as a tool to support Argentine small businesses—soared after Milei's verified X post but collapsed within hours as deployer wallets withdrew $110 million in liquidity, according to The Block report. Similarly, $MELANIA, tied to Melania Trump, plummeted over 60% within days, as outlined in a Coinotag article. Plaintiffs argue that celebrities were mere "props" to legitimize the scheme, with no actual involvement, a point echoed in a Yahoo report.

The lawsuit seeks full repayment and triple damages under U.S. RICO laws, citing fraud, conspiracy, and deceptive practices. It names Kelsier Ventures CEO Hayden Davis, Jupiter co-founder Ng Ming Yeow, and other collaborators as defendants. Blockchain analysis by firms like Bubblemaps revealed wallet links between $LIBRA and $MELANIA, corroborating claims of coordinated dumping, per a CryptoTimes report. The plaintiffs also highlight at least 15 similar tokens, including $ENRON, $M3M3, and $TRUST, as part of a broader pattern reported in a LiveBitcoinNews piece.

The case has drawn attention for its intersection with politics. While Milei's anti-corruption office cleared him of ethics violations, his initial promotion of $LIBRA and subsequent deletion of the post raised scrutiny. The revised complaint states they "were used as props," according to a Benzinga article. Meanwhile, a 4.2 million airdrop to Trump-linked addresses emerged just hours after the lawsuit was filed, sparking speculation about potential pardons for crypto figures facing legal challenges. The Trump family's crypto ventures, including $TRUMP and $MELANIA tokens, reportedly generated $1 billion in pre-tax gains over the past year.

The collapse of these tokens underscores vulnerabilities in the memecoin market, where celebrity endorsements can mask manipulative practices. Analysts note that Solana's rapid deployment tools enabled the scheme, allowing insiders to control trading access and liquidity. As the case unfolds, it may prompt stricter oversight of DeFi projects and memecoins, particularly those leveraging high-profile names.