Tesla CEO Elon Musk is in hot water after investors filed a class action lawsuit accusing him of market manipulation with Dogecoin. They have added insider trading allegations to the original lawsuit. Investors claim that Elon Musk’s actions have cost them a lot of money.
According to the charges, Elon Musk utilized a variety of methods to manipulate the price of Dogecoin and profit at the expense of investors. These tactics were primarily accomplished through Twitter tweets.
Other allegations include paid endorsements from online influencers and his appearance on “Saturday Night Live” on NBC.
One of the most notable occurrences that drew the attention of investors occurred in April when Musk replaced Twitter’s logo with Dogecoin’s Shiba Inu Dog logo. Shortly after, he sold over $124 million in Dogecoin, resulting in a 30% price increase.
🚨Elon Musk faces lawsuit over #Dogecoin price manipulation.
— Walletor (@walletorapp) June 1, 2023
The most serious of them all is that they allege he engaged in insider trading. They claim that Musk had previous knowledge and utilized it to his advantage.
Insider trading occurs when a person buys or sells financial instruments based on confidential and nonpublic knowledge. They have an unfair edge since they can foresee where the price will go in the future. This used to be a huge issue in the stock market but it also quite common in the blockchain space.
This latest round of insider trading allegations is part of an ongoing case. They are merely seeking justice for what they believe to be Elon Musk’s reckless acts. This has resulted in numerous losses for them, and it is extremely unforgiving.
As the legal battle continues, the outcome of Elon Musk’s case remains unknown. Investors are hoping for a fair conclusion that addresses their concerns while also shedding light on the charges. These allegations could spell out real trouble for Elon Musk. However only time will tell what happens next, so make sure to stay tuned.