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Class Action Alleges Fraud in $MELANIA Coin Scheme

10/24/2025

31 7 Full Breakdown

Summary

Story summary

A federal class action accuses Benjamin Chow and Hayden Davis of a fraudulent scheme involving cryptocurrencies, including the $MELANIA coin promoted by First Lady Melania Trump.
Plaintiffs say they exploited Melania Trump's celebrity to mislead investors, using her as window dressing.
The complaint notes Melania Trump is not named as a defendant.
The $MELANIA coin peaked at $1.6 billion.
The coin has lost 95% of its value.

History

Historical Context

The 2018 cryptocurrency crash, which saw Bitcoin's value drop by over 80% from its January peak, was preceded by a speculative boom in 2017. This downturn led to widespread fraud, including schemes like Melania Trump's $MELANIA coin, highlighting the exploitation of celebrity endorsements. The fallout prompted increased regulatory scrutiny and calls for better investor protections in the volatile crypto market.

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Story summary

A federal class action accuses Benjamin Chow and Hayden Davis of a fraudulent scheme involving cryptocurrencies, including the $MELANIA coin promoted by First Lady Melania Trump.
Plaintiffs say they exploited Melania Trump's celebrity to mislead investors, using her as window dressing.
The complaint notes Melania Trump is not named as a defendant.
The $MELANIA coin peaked at $1.6 billion.
The coin has lost 95% of its value.

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