Melania Trump Hit by Dual Legal Shock: $Melania Memecoin Lawsuit and New Epstein Inquiry
Melania Trump’s name is currently at the center of two massive legal battles, neither of which directly accuse the former First Lady of criminal wrongdoing, but both of which put her and the Trump administration in a challenging public spotlight.
The most significant action is a federal class-action lawsuit filed by investors against several crypto entrepreneurs over the catastrophic collapse of the $Melania memecoin, a digital token she promoted earlier this year.
The $Melania Memecoin Lawsuit
The $Melania memecoin was launched in January, just before Donald Trump’s second term inauguration, and was heavily promoted by Melania herself on social media, urging supporters to buy the token. This endorsement sent the coin’s price to a peak of $13.73. However, in less than three months, its value had crashed to less than 10 cents, wiping out investments.
The lawsuit, which was recently covered by WIRED, targets figures like Benjamin Chow and Hayden Davis, alleging that the investors were misled and manipulated. The complaint claims the entire project was an orchestrated “rug pull” designed to attract buyers and then abruptly sell off holdings for massive profit, leaving everyday investors with near-worthless tokens.
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Melania Trump was 'window dressing' in memecoin scam, lawsuit claims
First lady's image exploited 'to sell legitimacy to unsuspecting investors, new legal filing argues pic.twitter.com/oUGC3beJMi— Simo Saadi🇺🇸🇲🇦 (@Simo7809957085) October 22, 2025
It is critical to note that the legal documents explicitly state that Melania Trump is not a direct party to the lawsuit, nor is she accused of scheming. Lawyers contend that “Melania Trump’s team, to the extent it granted any permission, did so without knowledge of the fraud, the insider rigging, or the deceptive launch mechanics.” Instead, the suit alleges the developers used her image and promotion as “window dressing” to lend legitimacy to the scheme.
Understanding the “Rug Pull” Scheme
A rug pull is a form of cryptocurrency fraud where the creators of a project abandon it after driving up the coin’s price, leaving investors with worthless tokens.
The scheme typically works as a pump-and-dump:
- The Pump: Developers attract a rush of buyers using hype, celebrity association, and misleading claims, rapidly inflating the token’s price.
- The Dump: Insiders, who hold a large reserve of the tokens, suddenly sell off their entire supply (pulling the rug), flooding the market and causing the token’s value to instantly plummet. This leaves everyday investors with unsellable losses.
The crash of $Melania is made more dramatic by the context of the Trump family’s larger crypto empire. President Trump and his relatives have reportedly pocketed billions in profits from the industry over the past year, with the President’s own $Trump coin becoming a centerpiece for fundraising.
Entanglement in the Jeffrey Epstein Files Controversy
Adding to her legal difficulties, Melania Trump is also facing a separate lawsuit concerning the late sex offender Jeffrey Epstein.
Trump biographer Michael Wolff has reportedly sued Melania for allegedly trying to stifle a “legitimate inquiry” into the Epstein matter. This development puts further pressure on the Trump administration, which has been dealing with the fallout of the delayed public release of the Epstein client list.
With the late Virginia Giuffre’s memoir, Nobody’s Girl, detailing her suffering as an Epstein victim, now released posthumously, public pressure for the full release of the files is at an all-time high. Melania’s name being introduced into the controversy complicates the administration’s ability to manage the intense public outrage surrounding the Epstein files.
Sources
- The Guardian: Melania Trump’s meme coin architects accused of pump-and-dump fraud in lawsuit.
- The Independent: Melania Trump used as ‘window dressing’ in memecoin scam that caused millions in losses, lawsuit claims.
- Kaspersky: What Are NFT Rug Pulls? How To Protect Yourself From NFT Fraud? (For the definition of a rug pull scheme).
- Fox Business: Melania Trump launches cryptocurrency meme coin after President-elect Trump launches his own (Context on the $Melania launch).
