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fraud
Creators of Melania Trump Meme Coin Accused of Fraud as Value Has Tanked By 95%
Investors trusted that no one of the first lady's stature "would knowingly associate with a fraudulent venture,” alleges a lawsuit.
Oct 22, 2025
The creators of the official meme coin of First Lady Melania Trump are being accused of engaging in a sophisticated fraud scheme in a lawsuit filed by cryptocurrency investors.
As reported by Wired on Tuesday, the allegations against the creators of the Melania coin came as part of a proposed amended complaint that had been filed by investors earlier this year against Benjamin Chow, cofounder of crypto exchange Meteora, and Hayden Davis, cofounder of crypto venture capital firm Kelsier Labs.
According to the proposed complaint, Chow and Davis conspired to run pump-and-dump schemes on over a dozen meme coins they launched, including the Melania coin.
Pump-and-dump schemes involve asset owners who knowingly use false information to hype up the value of their assets before selling them off en masse just before their prices crash.
The plaintiffs claim that the alleged scammers have developed a "repeatable six-step ‘playbook’ for pump-and-dump fraud" that had already been used before it was employed on behalf of the first lady's coin, and that inflicted millions of dollars in losses on investors.
The complaint does not name the first lady as a conspirator, but says that she was merely used as "window dressing for a crime engineered" by Chow and Davis.
Despite President Donald Trump's history of financial fraud, which he was found guilty of in New York in 2024, the complaint states that "investors reasonably interpreted the use of Melania Trump’s name and likeness as evidence of legitimacy and due diligence—trusting that no one of her stature would knowingly associate with a fraudulent venture."
Chow and Davis were also responsible to launching the cryptocurrency promoted by Argentine President Javier Milei earlier this year that collapsed in value shortly after its launch.
Max Burwick, an attorney whose law firm Burwick Law is representing the plaintiffs, told Wired that the case "could clarify basic expectations for token launches and disclosures in the US" if it is successful.
According to cryptocurrency news website 99Bitcoins, the Melania meme coin has lost more than 95% of its peak value since its launch in February, and is now trading at under 10 cents per unit.
While Melania Trump was not directly involved in the creation of the now nearly-worthless meme coin, the Trump family was accused last month of the "greatest corruption in presidential history" when it was reported they had added $5 billion in cash to their fortunes when President Donald Trump's cryptocurrency was opened to the public market.
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Trump DOJ Slammed for 'Desperate' Attempt at Retribution After Subpoenas for NY AG James
"Attorney General James took on Trump's fraud... and won," said New York City mayoral candidate Zohran Mamdani. "So it's little wonder that Trump's politicized DOJ is now coming after her."
Aug 08, 2025
A lawyer representing New York's top law enforcement official, Attorney General Letitia James, said Friday that the news of the Trump administration's investigation into James and her successful legal cases against President Donald Trump amounted to "the most blatant and desperate example" of the president's "political retribution campaign."
In recent days, The Washington Post reported Friday, the U.S. Department of Justice (DOJ) issued a subpoena to James as part of an investigation into whether the attorney general, a longtime adversary of Trump, violated the president's civil rights when she successfully sued him and his real estate business for fraud.
A second subpoena was related to James' litigation against the National Rifle Association, in which a New York jury found last year that former NRA CEO Wayne LaPierre and other executives had engaged in rampant corruption.
The civil rights statute that the Trump administration is reportedly using to investigate James' case against the president is typically used in cases related to law enforcement officers discriminating against or mistreating people based on race, religion, sex, or ethnicity. According to The New York Times, the DOJ is arguing that James used her law enforcement authority to deprive Trump of his rights.
James filed a civil fraud case against Trump and the Trump Organization in 2022 and won a $450 million judgment against the president in penalties plus interest. The interest the president owes has grown to half a billion dollars as he has refused to pay and has appealed the ruling.
New York Supreme Court Justice Arthur Engeron said that Trump and his company's executives were "incapable of admitting the error of their ways" regarding the "blatantly false financial data" they used to misrepresent of the value of their properties, which allowed them to get better loan and insurance rates.
The Democratic candidate in the New York City mayoral race, state Rep. Zohran Mamdani (D-36), expressed little surprise that Trump was apparently retaliating against the attorney general who won against him in court.
"Attorney General James took on Trump's fraud and the NRA's rampant corruption—and won both cases," said Mamdani. "So it's little wonder that Trump's politicized DOJ is now coming after her. The people of New York stand with their lawyer and champion."
The subpoenas were issued months after the DOJ appeared to try another tactic to punish James when it opened a criminal investigation into alleged mortgage fraud, accusing the attorney general of lying on loan documents for a home that she purchased in Virginia and saying the home would be her primary residence. James' attorneys have said the error was an honest mistake.
Dana Nessel, the Democratic attorney general of Michigan, came to James' defense on Friday and condemned "the depths to which Trump and his cronies will go to exact vengeance upon anyone who has dared to hold him accountable."
But the subpoenas, said Nessel, are not just a concern for James.
"Americans should know and understand how deeply compromised our federal law enforcement agencies are," she said. "If this can happen to AG James, it can happen to anyone."
Geoff Burgan, a spokesperson for James, agreed that "any weaponization of the justice system should disturb every American."
"We stand strongly behind our successful litigation against the Trump Organization and the National Rifle Association, and we will continue to stand up for New Yorkers' rights," said Burgan.
Abbe Lowell, the attorney general's lawyer, said that "weaponizing the Department of Justice to try to punish an elected official for doing her job is an attack on the rule of law and a dangerous escalation by this administration."
"If prosecutors carry out this improper tactic and are genuinely interested in the truth," said Lowell, "we are ready and waiting with facts and the law."
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'Outrageous Lies': Claiming Fraud, Trump Floats Kicking Millions Off Social Security
"They are laying the groundwork for denying benefits to anyone they want to punish or deem unworthy—or indeed, any one of us," said the president of Social Security Works.
Feb 19, 2025
U.S. President Donald Trump launched his latest threat against Social Security on Tuesday under the guise of combating fraud, floating the possibility of stripping benefits from "millions of people" as Elon Musk's lieutenants infiltrate the agency that administers the nation's most effective anti-poverty program.
"The good thing about Social Security and what I read is if you take all of those numbers off because they're obviously fraudulent or incompetent... all of a sudden we have a very powerful Social Security with people 80 and 70 and 90 but not 200 [years old]."
"We have millions and millions of people over 100 years old" who are receiving Social Security payments, Trump continued.
The Republican president did not provide any evidence for his claim of substantial fraud in the Social Security program, which provides benefits to roughly 70 million Americans. Musk has similarly claimed, without evidence, that "tens of millions of people [are] marked in Social Security as 'ALIVE' when they are definitely dead."
Watch Trump's comments:
Trump: We have millions and millions of people over 100 years old. Everybody knows that's not so. We have a very corrupt country, a very corrupt country. The good thing about Social Security and what I read is if you take all of those numbers off because they're obviously… pic.twitter.com/OwwxJ6difQ
— Acyn (@Acyn) February 18, 2025
A 2024 report from SSA's inspector general found that just 0.84% of the $8.6 trillion in Social Security benefits paid out between 2015 and 2022 were dispensed improperly. Trump recently fired the SSA inspector general, along with more than a dozen other agency watchdogs.
Nancy Altman, president of the progressive advocacy group Social Security Works, told Common Dreams on Wednesday that Trump's remarks about purported Social Security fraud were "outrageous lies."
"Social Security has vanishingly small amounts of fraud, which are generally quickly uncovered when the agency is adequately funded," said Altman. "Trump and Musk are intentionally undermining confidence in our Social Security system. They are laying the groundwork for denying benefits to anyone they want to punish or deem unworthy—or indeed, any one of us."
On Tuesday, Fox News aired a joint interview with Trump and Musk in which the president pledged that "Social Security won't be touched... other than if there's fraud or something."
"We're going to find it," Trump added.
"Musk’s baseless claims of massive fraud are a poorly disguised pretext to cut benefits for seniors to pay for his giant tax cut."
The Associated Press reported that "over the past few days, President Donald Trump and billionaire adviser Elon Musk have said on social media and in press briefings that people who are 100, 200, and even 300 years old are improperly getting benefits—a 'HUGE problem,' Musk wrote."
But AP noted that "as of September 2015, the agency automatically stops payments to people who are older than 115 years old."
The outlet added that "part of the confusion comes from Social Security's software system based on the COBOL programming language, which has a lack of date type. This means that some entries with missing or incomplete birthdates will default to a reference point of more than 150 years ago."
Trump's latest attack on the Social Security system came after the SSA's acting commissioner resigned this past weekend over a clash with Musk lieutenants who sought access to highly sensitive Social Security data.
Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, said in a statement Tuesday that "despite President Trump's promise not to touch Social Security, Elon Musk has gained access to the system that cuts your grandmother's Social Security check and is wreaking havoc."
"Musk's baseless claims of massive fraud," Jacquez added, "are a poorly disguised pretext to cut benefits for seniors to pay for his giant tax cut."
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