Melania Trump and Javier Milei Connected to $MELANIA and $LIBRA Fraud Allegations

A new class action lawsuit alleges that memecoins promoted by Melania Trump and Argentine President Javier Milei were part of a coordinated fraud, with the public figures used as “props” rather than active participants. According to Forbes, the complaint claims that Meteora founder Benjamin Chow and Kelsier Ventures co-founder Hayden Davis orchestrated the pump-and-dump schemes behind these tokens.

The lawsuit, filed in Hurlock v. Kelsier Ventures, focuses on multiple cryptocurrencies, with $MELANIA and $LIBRA—the coins associated with Trump and Milei—highlighted as high-profile examples of alleged misconduct. Plaintiffs explicitly state that Melania Trump and Javier Milei were not alleged to have engaged in any wrongdoing themselves.

The amended federal class action lawsuit alleges that Chow and Davis exploited the fame of public figures to lend credibility to memecoins, inflating their perceived legitimacy. 

Background of the Alleged Scheme

The case builds on a series of allegations initially brought in April 2025, according to The Independent. Plaintiffs first targeted Chow and Davis over a single memecoin, $M3M3, but later expanded the complaint to include racketeering and multiple token launches. Key claims include:

• Celebrity association: Melania Trump’s promotion of $MELANIA and Milei’s promotion of $LIBRA were used to legitimize the coins.
• Pump-and-dump practices: The defendants allegedly inflated token prices through strategic market manipulation, then sold their holdings at peaks.
• Automated access control: Using Solana blockchain infrastructure, Chow and collaborators controlled token deployment to maximize returns.
• Paid promotions and social media campaigns: Influencers and paid posts created the illusion of organic demand.

Plaintiffs emphasize that the public figures themselves were not defendants; the lawsuit targets the operators behind the tokens.

How the Tokens Operated

According to the complaint, Chow and Davis followed a repeatable six-step playbook for launching memecoins:

• Create a token tied to a recognizable public figure or theme.
• Use celebrity endorsements or “borrowed fame” to generate attention.
• Control access to token allocations via private wallets on the Solana blockchain.
• Manipulate market liquidity to inflate token value artificially.
• Execute a sell-off once the price peaked, causing the token to crash.
• Repeat the process across multiple tokens, applying the same blueprint.

The lawsuit specifically mentions at least 15 tokens, including $MELANIA and $LIBRA, which followed this methodology.

Case Details: $MELANIA and $LIBRA

$MELANIA was promoted by the First Lady on January 19, 2025, through a post on X, coinciding with Donald Trump’s second inauguration. The token initially surged, reaching a market capitalization of over $2 billion, but rapidly declined as insiders sold holdings. By Wednesday afternoon, $MELANIA’s market cap had fallen to $86 million, with a price of $0.0945 per token.

Similarly, $LIBRA, promoted by Argentine President Javier Milei, spiked in value before plummeting 90% within hours. On-chain analytics reportedly revealed wallet connections between the $MELANIA and $LIBRA launches, strengthening allegations of a coordinated scheme.

The lawsuit argues that these tokens targeted both crypto-savvy investors and mainstream consumers, expanding the potential pool of victims due to the credibility lent by celebrity associations.

Alleged Roles of Chow and Davis

The complaint outlines that Benjamin Chow orchestrated the scheme with a small team:

• Ng Ming Yeow (“Ming”): Co-founder of Meteora and Jupiter.
• The Davis family: Hayden, Charles, and Gideon Davis of Kelsier Ventures, who executed token launches under Chow’s direction.

Chow allegedly developed the automated systems used to manipulate token supply and market access, giving the group privileged control over price and liquidity. Davis and Kelsier Ventures reportedly carried out at least 15 token launches following the same blueprint.

Chow resigned from Meteora in February 2025 amid emerging allegations, and neither Chow nor Davis have publicly commented on the amended complaint.

Technical Aspects

The lawsuit highlights the technical mechanisms enabling the alleged fraud:

• Solana blockchain: Used for token deployment and privileged access control.
• Automated market maker (AMM): Provided the infrastructure to manipulate liquidity and token prices.
• Cross-token connections: Wallet analysis linked multiple token launches, supporting allegations of coordinated manipulation.
• Influencer amplification: Paid campaigns and celebrity promotions amplified perceived demand, masking the orchestrated nature of the scheme.

These details underline how blockchain technology can be misused to control tokenomics and market behavior.

Potential Legal Outcomes

The case is ongoing, with plaintiffs seeking several forms of relief:

• Recovery of profits earned through the alleged schemes.
• Preventing defendants from executing further token launches.
• Appointment of an independent receiver to oversee Meteora operations and the Solana infrastructure used.

It remains unclear whether the case will go to trial or be resolved through settlements or injunctions.

Taking a Broader Perspective

The $MELANIA token is part of a larger pattern of high-profile crypto ventures tied to prominent figures, including Donald Trump’s $TRUMP memecoin and other family ventures. Forbes estimates the First Lady’s net worth at $20 million as of September 2025, with the memecoin forming a notable part of her financial profile. The Trump family has reportedly added $2 billion to their net worth through cryptocurrency holdings and ventures.

Conclusion

The Hurlock v. Kelsier Ventures lawsuit illustrates how memecoin markets can be manipulated through coordinated technical and promotional strategies. While public figures like Melania Trump and Javier Milei were not accused of misconduct, the case shows the potential for celebrity associations to be exploited in tokenomics schemes.

Chow and Davis are alleged to have leveraged blockchain infrastructure, market-making tools, and social media campaigns to control token liquidity and price, generating substantial gains while leaving investors exposed.

Resources:

1. The lawsuit document: https://www.courtlistener.com/docket/70237496/hurlock-v-kelsier-ventures/?filed_after=&filed_before=&entry_gte=&entry_lte=&order_by=desc

2. $MELANIA Under Fire: First Lady’s Memecoin Was Part Of Fraudulent Scheme, Lawsuit Alleges—What To Know - report by Forbes: https://www.forbes.com/sites/alisondurkee/2025/10/22/melania-under-fire-first-ladys-memecoin-was-part-of-fraudulent-scheme-lawsuit-alleges-what-to-know/

3. Melania Trump used as ‘window dressing’ in memecoin scam that caused millions in losses, lawsuit claims - report by The Independent: https://www.independent.co.uk/news/world/americas/us-politics/melania-trump-cryptocurrency-lawsuit-memecoin-b2850063.html

4. Trump family's net worth has increased by $2.9 billion thanks to crypto investments, new report says - report by CBS News: https://www.cbsnews.com/news/trump-family-net-worth-crypto-investments/

5. Melania Trump, Javier Milei Used as 'Props' for Meme Coin Fraud, Lawsuit Alleges - report by Decrypt: https://decrypt.co/345493/melania-trump-javier-milei-props-meme-coin-fraud-lawsuit-alleges