$50M Crypto Scandal: Meteora Founder Accused in MELANIA & LIBRA Token Fraud

 

Melania Trump and Javier Milei Cleared in Explosive Memecoin Lawsuit as Meteora Founder Faces Fraud Allegations

In a sweeping new development in the cryptocurrency space, a federal lawsuit has cleared former U.S. First Lady Melania Trump and Argentine President Javier Milei of any involvement in a multimillion-dollar memecoin scam. The case instead targets Benjamin Chow, founder of the blockchain platform Meteora, accusing him of engineering a coordinated pump-and-dump scheme that exploited the names and images of prominent figures to defraud investors.

The lawsuit, filed in a New York district court earlier this week, alleges that Chow and his business associates at Kelsier Ventures used tokens such as MELANIA and LIBRA to attract unsuspecting investors. The scheme allegedly relied on the public credibility of these well-known personalities to lend legitimacy to what prosecutors describe as a “carefully orchestrated liquidity trap.”

Public Figures Used as “Props” in Crypto Fraud Scheme

According to the legal filing, Benjamin Chow and his partners created a network of fraudulent projects, using familiar faces and brands to lend legitimacy to otherwise baseless cryptocurrencies. These projects included “official” tokens bearing names tied to Trump and Milei — both of whom have built strong political and public reputations.

The lawsuit states:

“Defendants borrowed credibility from real-world figures or themes—such as the ‘Official Melania Trump Coin’ and the ‘Argentine Revival Coin’ tied to President Javier Milei. These names and faces were used as props to legitimize what was, in reality, a coordinated liquidity trap. Plaintiffs do not allege those public figures were culpable; they were merely the window dressing for a fraud engineered by Meteora and Kelsier.”

The court documents allege that at least 15 tokens followed this same deceptive pattern, drawing investors through misleading marketing campaigns and inflated promises. Once prices surged due to public hype, insiders allegedly dumped their holdings, leaving ordinary investors with devastating losses.

Inside the MELANIA and LIBRA Token Scams

The MELANIA token first gained attention in January, when Melania Trump’s social media posts appeared to endorse a Solana-based coin bearing her name. The move sparked an immediate market frenzy. Within 24 hours, trading volume surged to nearly $18 million, with prices spiking over 400% before collapsing by more than 99% days later.

Blockchain analysis now shows that wallets connected to Chow and Kelsier Ventures liquidated large positions during the price peak, allegedly netting hundreds of thousands of dollars in profits before abandoning the project.

The LIBRA token followed a similar trajectory. Promoted as a digital asset supporting small businesses in Argentina, the token was amplified by a post from President Javier Milei — a known crypto advocate. The price of LIBRA soared by over 600% in just hours before crashing 90% amid mass sell-offs traced back to wallets linked to the same network.

Shortly after the collapse, President Milei deleted all promotional posts related to the token, stating that he had been “misled by advisors” who assured him of the project’s legitimacy.

A Coordinated Deception Network

The complaint describes an elaborate fraud network operated by Benjamin Chow and a close group of collaborators, including Ng Ming Yeow (“Ming”), co-founder of Meteora and Jupiter, and members of the Davis family — Hayden, Charles, and Gideon Davis — operating through Kelsier Ventures. Together, they allegedly structured a web of shell entities to issue and promote the fraudulent tokens.

Each token followed a similar playbook:

• Step 1: Create a token branded with a celebrity or political figure.

• Step 2: Launch aggressive marketing campaigns on social media and through influencers.

• Step 3: Attract retail investors by suggesting endorsements from high-profile individuals.

• Step 4: Artificially pump token prices using internal liquidity pools.

• Step 5: Dump holdings to extract profits, then abandon the project.

The filing describes how the group leveraged decentralized finance (DeFi) mechanisms and the Solana blockchain to obscure their transaction trails, making it difficult for regulators and investigators to track their movements.

Melania Trump and Javier Milei Cleared of Wrongdoing

Despite their names being used in the marketing of these projects, both Melania Trump and Javier Milei have been explicitly cleared of any wrongdoing. The lawsuit emphasizes that neither public figure had any financial or operational involvement in the creation or promotion of the tokens beyond limited appearances or mentions on social platforms.

A spokesperson for Melania Trump stated,

“Mrs. Trump had no involvement, financial or otherwise, with any cryptocurrency project bearing her name. Any attempt to associate her with these ventures was done without authorization or consent.”

Similarly, a representative for President Milei noted that the Argentine leader “had no direct role in the LIBRA project and received no compensation or benefit” from its short-lived rise and collapse.

Market Reactions and Regulatory Fallout

The scandal has reignited debate over celebrity-backed cryptocurrencies and the lack of oversight in the digital asset industry. Regulators in both the United States and Argentina are reportedly examining whether tighter rules are needed to prevent the misuse of public figures’ identities in promoting financial products.

The U.S. Securities and Exchange Commission (SEC) has previously taken action against similar cases, including celebrities who promoted tokens without proper disclosure. However, in this instance, legal experts note that both Trump and Milei appear to be victims rather than participants in the alleged fraud.

Crypto analysts say the case may have broader implications for influencer-driven marketing in the crypto space. “This lawsuit could set a precedent for holding developers accountable rather than the public figures used as bait,” said Rachel Monroe, a blockchain legal expert at Cornell University. “It underscores the need for authentication and consent mechanisms before associating a name with a token.”

Broader Impact on Meteora and the Crypto Industry

For Benjamin Chow and his company Meteora, the fallout could be devastating. Once hailed as one of Solana’s most promising DeFi innovators, Meteora’s reputation now faces immense scrutiny. The company’s native token, $MET, has fallen more than 35% in the week following the lawsuit announcement, erasing millions in market capitalization.

If proven, the allegations could result in severe penalties, including restitution to defrauded investors and potential prison time for those directly involved. Legal experts also expect the lawsuit to accelerate ongoing efforts to regulate memecoins, a segment notorious for extreme volatility and rampant speculation.

Meanwhile, investors who lost money in the MELANIA and LIBRA tokens are preparing to join a class-action lawsuit seeking damages exceeding $120 million.

Conclusion

The case against Benjamin Chow and his associates marks one of the most significant memecoin-related fraud cases of 2025. By clearing Melania Trump and Javier Milei of wrongdoing, the lawsuit not only highlights how easily public personas can be exploited in the fast-moving crypto landscape but also raises fundamental questions about accountability in decentralized ecosystems.

As investigations continue, one thing is clear: the era of unregulated celebrity-linked crypto launches may soon come to an end. The court’s decision could pave the way for stronger oversight, ensuring that the next wave of innovation in digital finance is built on transparency rather than deception.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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