Memecoin Scam: $57M Pump & Dump Lawsuit Hits MELANIA & LIBRA
Benjamin Chow, founder of Meteora, faces a class-action lawsuit accusing him of orchestrating a $57M memecoin scam using tokens MELANIA and LIBRA. The complaint, Hurlock v. Kelsier Ventures, alleges Chow and co-conspirators launched coordinated pump & dump schemes, leveraging celebrity names Melania Trump and Argentina’s President Javier Milei to boost credibility.
MELANIA soared after launch before plummeting 99%, while LIBRA collapsed shortly after debut. Neither Trump nor Milei are involved; Argentine anti-corruption officials have cleared Milei of wrongdoing. On-chain forensics linked Chow’s network of wallets to at least 15 scam tokens.
Chow resigned from Meteora in February amid the allegations. This memecoin scam underscores the risks in unregulated meme coin markets and could spur stricter regulatory scrutiny. Traders should verify project teams, audit smart contracts, and approach memecoins with heightened caution.
Bearish
This class-action lawsuit and pump & dump revelations are likely to undermine confidence in memecoins, triggering sell-offs and heightened caution among traders. In the short term, sentiment towards MELANIA and LIBRA—and similar tokens—will turn negative, pressuring prices downward. Over the long term, increased regulatory scrutiny and due-diligence demands may curb speculative meme coin activity, further dampening price potential.