- The lawsuit blames Benjamin Chow and his associates for the meme coin fraud, not Melania Trump or Javier Milei.
- Both MELANIA and LIBRA tokens surged before crashing, raising suspicions of market manipulation
- On-chain evidence links the wallets behind MELANIA and LIBRA, supporting fraud allegations against Chow and Kelsier Ventures.
A recent class action lawsuit has shed light on the individuals behind the promotion of controversial meme coins like Melania Trump’s MELANIA and Javier Milei’s LIBRA. The lawsuit alleges that while these public figures helped promote the tokens, they were not responsible for the alleged fraudulent activity. Instead, the filing places the blame on Benjamin Chow, founder of the startup Meteora, and his associates.
Chow Named as the Central Figure in the Scheme
According to the lawsuit, Meteora’s Benjamin Chow orchestrated the scheme to launch a series of meme coins, including the Melania and Libra tokens. The complaint claims that Chow, along with Hayden Davis and Kelsier Ventures, manipulated the market through “pump-and-dump” tactics.
The legal filing specifies that the five tokens named in the lawsuit followed a similar blueprint, with Melania and Libra being the most prominent. Although Melania Trump and Javier Milei are key figures in the saga, the lawsuit clarifies that they were not directly involved in any fraudulent activity.
Both public figures promoted the tokens, but the complaint asserts that they were used as “props” to lend credibility to the coins. The lawsuit explains that their names and public personas were leveraged by Chow and his team to make the tokens appear legitimate, attracting unsuspecting investors.
The Rise and Fall of MELANIA and LIBRA Coins
The MELANIA token, promoted by the First Lady in January, experienced a massive surge in value shortly after its launch. However, its price quickly collapsed by 99% in the following months, leading to suspicions of market manipulation. Similarly, the LIBRA token, associated with Argentine President Milei, skyrocketed in value before plummeting 90% within hours. Milei deleted his promotional posts shortly after the coin’s value tanked, raising questions about his involvement.
On-chain data has revealed a link between the wallets that launched the MELANIA and LIBRA tokens. This connection supports claims made in the class action lawsuit, which also names Kelsier Ventures and Chow as responsible for the fraudulent activity. The legal filing underscores that the tokens were part of a coordinated effort to deceive investors, with public figures serving as mere “window dressing.”
The lawsuit continues to unfold, with significant amounts of money at stake. In August, a judge ordered the unfreezing of $57.6 million in USDC related to the LIBRA token, expressing skepticism about the plaintiffs’ ability to win the case. As the legal battle progresses, the focus remains on the actions of Benjamin Chow and his collaborators, who are accused of masterminding the alleged scam
