Hyperliquid News Today: Political Influence and Crypto Hype: The Fragile Foundation Behind $4.2M Airdrop

A CryptoNews report reveals that a $4.2 million airdrop of Meteora's $MET tokens to addresses linked to Donald Trump and his allies has intensified scrutiny of the crypto project's operations, even as its founder faces a $57 million fraud lawsuit for alleged pump-and-dump schemes involving tokens like $LIBRA and $MELANIA. The distribution, which occurred hours after the lawsuit was filed, raises questions about potential conflicts of interest and regulatory oversight in a sector already grappling with rampant memecoin volatility.

The lawsuit, filed by a coalition of investors, accuses Meteora founder Matthew Chow of leveraging celebrity endorsements-most notably from Melania Trump and Argentine President Javier Milei-to manipulate markets across multiple tokens. The complaint alleges systematic price manipulation, with insider-funded accounts executing trades, paid influencers amplifying hype, and rapid liquidation of positions to drain liquidity. The case seeks disgorgement of profits, treble damages under RICO statutes, and appointment of a receiver to oversee Meteora's smart-contract programs.

Forensic analysis of the airdrop revealed that wallets tied to $MELANIA liquidity provision received tokens, while other tokens linked to the alleged fraud ring, such as $AIAI and $M3M3, were excluded. This selective distribution has fueled speculation about Meteora's prioritization of certain stakeholders, particularly as the $MELANIA token has since plummeted from $13.73 to $0.095, erasing over 99% of its value. The token's collapse followed Milei's retraction of his endorsement and the withdrawal of $110 million in USDC liquidity by the deployer wallet, a pattern the lawsuit describes as a recurring tactic across memecoin projects.

The airdrop's timing has also drawn attention. It occurred just hours after Trump pardoned Binance founder Changpeng Zhao, who faces his own legal challenges in the U.S. and Hong Kong. Some observers have speculated whether Meteora's founder, who resigned in February 2025 amid the $LIBRA controversy, could receive similar executive clemency despite RICO charges. A leaked video reportedly shows Chow expressing shock at misconduct by Kelsier Ventures CEO Hayden Davis, who co-founded both $LIBRA and $MELANIA, further complicating the narrative.

Meanwhile, the Trump family's broader crypto ventures have generated over $1 billion in pre-tax gains in the past year, with memecoins like $TRUMP and $MELANIA contributing $427 million. These figures underscore the intersection of political influence and crypto speculation, particularly as the sector faces heightened regulatory scrutiny. The Meteora airdrop, however, highlights the risks of conflating celebrity endorsements with financial legitimacy, especially in projects lacking transparent governance.

The case adds to a growing list of legal challenges in the memecoin space. Projects like $LIBRA and $MELANIA have repeatedly demonstrated the fragility of tokens reliant on viral marketing and influencer-driven hype. As the lawsuit progresses, it may set a precedent for how courts address the unique risks of crypto assets that blur the lines between entertainment, finance, and political capital.