A bizarre, high-profile memecoin scam has left thousands of investors reeling from multimillion-dollar losses. At the heart of this fiasco are tokens like $MELANIA and $LIBRA.
The scam allegedly exploited the names and endorsements of former First Lady Melania Trump and Argentine President Javier Milei to lure unsuspecting buyers into a classic pump-and-dump trap.
Hurlock v. Kelsier Ventures Lawsuit
A lawsuit filed in U.S. federal court paints a damning picture of coordinated fraud. It accuses a network of crypto insiders of masterminding the scheme while using political figures as “props” to add a dash of legitimacy.
The memecoin scam unfolded on the Solana blockchain, where developers launched at least 15 tokens following the “playbook” of hype, insider buying, and ruthless dumping.
The $MELANIA token, branded as the “official Melania Trump coin,” surged in value shortly after its January 2025 debut, riding on Melania’s promotion. But it was short-lived: the coin plummeted 99% in the ensuing months as the team quietly offloaded $30 million worth of holdings.
Similarly, the LIBRA token capitalized on Javier Milei’s libertarian appeal. Promoted by the Argentine president in February 2025 as a vehicle to fund small businesses under the “Viva La Libertad Project,” it skyrocketed past $5 before crashing 90% within hours.
Milei, who deleted his promotional posts amid the backlash, denied any prior knowledge of the project’s shady underpinnings. He insisted he was only highlighting entrepreneurial efforts.
Nevertheless, around 40,000 people reportedly lost over $4 billion in the scandal and Argentina’s stock index dipped more than 5% in inflation-ravaged Argentina.
How did the memecoin scam take place?
Hurlock v. Kelsier Ventures’ lawsuit points fingers to Benjamin Chow, founder of the crypto firm Meteora, as the architect of the memecoin scam.
Chow reportedly assembled a tight-knit group, including co-founder Ng Ming Yeow and the Davis family of Kelsier Ventures to execute the fraud.
Hayden Davis also emerges as a key player, having met Milei multiple times in 2024 and boasting of “control” over the president to secure promotional deals.
Private Telegram messages and on-chain data reveal a web of connected wallets between $MELANIA and $LIBRA, showing how orchestrated the dumps were.
Chow resigned from Meteora in February 2025 amid the revelations, while an independent probe by law firm Fenwick & West was launched to scrutinize the firm’s involvement.
Political turmoil following the memecoin scam
Plaintiffs emphasize that neither Trump nor Milei is accused of wrongdoing; they were just used for the scam.
Despite this, it has in fact ignited political turmoil.
In Argentina, prosecutor Eduardo Taiano’s investigation, initiated in February 2025, targets Milei, his sister Karina (who hosted key meetings), and associates like Sergio Morales and Julian Peh (revealed to be operating under the alias Peh Chyi Haur).
International cooperation spans Spain, Paraguay, and Mexico, with asset discoveries ongoing. Opposition lawmakers pushed for impeachment in February, decrying the “unprecedented scandal,” though a congressional commission stalled until rule changes in October 2025.
Former Argentine Foreign Minister Diana Mondino recently dissed Milei in an Al Jazeera interview, suggesting his endorsement was either naive or corrupt, possibly landing him in jail.
This memecoin scam once again showcases how celebrity endorsements can mask predatory schemes. It certainly serves as a cautionary tale.
