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
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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.
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