A group of cryptocurrency traders banked nearly $100 million in profits by suspiciously timed transactions

Minutes before Melania Trump publicly announced the launch of her $MELANIA cryptocurrency, two dozen digital wallets rapidly purchased large quantities of the token

A group of cryptocurrency traders reaped nearly $100 million in profits through suspiciously timed transactions involving First Lady Melania Trump's cryptocurrency token, according to a report.

Two dozen digital wallets rapidly purchased large quantities of the token minutes ahead of Melania Trump's public announcement, ultimately netting a collective $99.6 million windfall, an investigation by the Financial Times has revealed.

The trading activity occurred critically in the two and a half minutes before the token's launch on Jan. 19.

The first lady unveiled the $MELANIA coin via a Truth Social post just hours before her husband's inauguration — significantly boosting the token's visibility and causing its value to skyrocket immediately after the announcement.

The suspicious activity saw traders buying around $2.6 million worth of tokens minutes before the public disclosure.

The profits were quickly realized, with about 81% of the coins sold within just 12 hours after Melania Trump's announcement.

This rapid turnover strategy is common among cryptocurrency speculators, known colloquially as "snipers," who exploit early knowledge to generate massive returns.

Cryptocurrency trades are recorded on blockchain technology, a transparent ledger system. Despite this transparency, the identities behind these digital wallets are typically kept secret.

Memecoins, such as $MELANIA, are speculative assets without intrinsic functions or regulatory oversight similar to traditional securities, rendering them particularly susceptible to exploitative practices.

The lack of regulation leaves retail investors at significant risk from manipulative trading practices.

One particularly noteworthy transaction saw a single digital wallet investing $681,000 in $MELANIA tokens just 64 seconds before the project's public unveiling.

Within one day, the owner of this wallet had already realized a profit of $39 million, eventually accruing an additional $4.4 million over the following three days.

In total, these strategically timed purchases amounted to 16.7 million of the 200 million $MELANIA tokens available at launch, highlighting the substantial advantage gained by traders acting on early information.

In contrast to Melania Trump's token, when the $TRUMP token — endorsed by President Donald Trump — launched two days prior, no similar pre-launch purchases occurred.

The earliest purchase of $TRUMP tokens took place after its public announcement, further highlighting the irregularities surrounding the $MELENIA coin.

The investigation further traced one early wallet to Hayden Davis, a Texas-based crypto entrepreneur previously linked to questionable crypto launches.

Despite this, Davis publicly denied any wrongdoing, stating, “There was no money made from the Melania team. We didn’t take any liquidity out. Zero.”

Entities behind the $MELENIA token, distinct from the pre-launch traders, reportedly collected around $64.7 million from primary sales and transaction fees, according to FT.

The coin is managed by MKT World LLC, a Delaware-based company linked to Melania Trump since 2021, though the nature of this involvement and the distribution of profits remain unclear.

A spokesperson for the first lady declined to comment, while Post has reached out to Davis for comment.