Meteora Founder Sued: Alleged Meme Coin Fraud Involving Melania Trump and Javier Milei

A class action lawsuit accuses Meteora co-founder Benjamin Chow of orchestrating a multimillion-dollar meme coin scam, using public figures like Melania Trump and Argentine President Javier Milei as “props” to deceive investors.

Allegations of Pump-and-Dump Schemes

The amended complaint in Hurlock v. Kelsier Ventures claims Chow, along with Hayden Davis and Kelsier Ventures, followed a “repeatable six-step playbook” for pump-and-dump fraud across at least 15 tokens, including $MELANIA, $LIBRA, $M3M3, $ENRON, and $TRUST. The suit alleges insiders controlled one-third of $MELANIA’s supply pre-launch, promoting it as an “official” Trump family coin before dumping holdings, causing 98% value collapse. $LIBRA, hyped by Milei, crashed 90% after similar manipulations.

Plaintiffs argue public figures were “window dressing,” not participants, demanding $57 million in damages for racketeering. The case, filed in New York’s Southern District, seeks injunctions against further schemes.

Meteora’s Role and Market Response

Meteora, a Solana-based DEX, is accused of providing the infrastructure for these launches, with Chow as the “center of the enterprise.” No response from defendants yet. The scandal has erased $90 million in market cap for implicated tokens, amplifying meme coin scrutiny amid DeFi’s $150 billion+ TVL.

Implications: Meme Coin Regulation Push

This lawsuit highlights DeFi’s dark side, where hype drives $10 billion in meme volume but enables fraud. It could spur audits and MiCA-like rules, impacting 15% of BNB Chain TVL.

In summary, the Meteora lawsuit exposes meme coin fraud, urging transparency for DeFi’s sustainable growth.