One of the richest people in the world and the billionaire CEO of Tesla Inc., Elon Musk, has found himself at the center of a debate over the meme-inspired cryptocurrency Dogecoin (DOGE). Musk’s tweets and public remarks regarding the well-known “meme coin” had a big impact on its price changes.
At its peak, Dogecoin ranked fifth in value among cryptocurrencies, with a market cap of over $80 billion. However, like many other cryptocurrencies, Dogecoin has since experienced a significant decline in value. Musk’s social media endorsements drove Dogecoin’s price up by 800% during the 2021 crypto bull run.
After the losses, investors filed a class-action lawsuit against Musk. They accused him of insider trading and manipulating Dogecoin’s price for personal gain, leading to billions in losses. The investors claimed Musk used various strategies to manipulate Dogecoin’s price. These included tweets, payments to influencers, and TV appearances. They alleged he did it for personal gain, causing losses for others. This was according to a filing in a Manhattan federal court in June. Multiple Dogecoin wallets were allegedly used in transactions, under Musk or Tesla’s control.
In one instance mentioned in the document, Musk sold almost $124 million’s worth of Dogecoin in April. After Musk replaced Twitter’s logo, Dogecoin’s price surged by 30%. The substitution involved the Shiba Inu dog emblem.
Dogecoin Saga Unveils Allegations Against Elon Musk: Legal Battle Intensifies
The plaintiffs accused Musk of deceiving investors while promoting himself and his businesses. They alleged a calculated mix of insider trading and market manipulation. According to the investors, Musk intentionally boosted Dogecoin’s price by 36,000% over two years. He then let it plummet later. These most recent charges were included in a proposed third amended complaint in a case that was already proceeding when it was first filed in June of the previous year.
The legal dispute has been hotly contested, with attorneys for the Dogecoin investors requesting that Musk’s legal team be dismissed because of a history of “derogatory and oppressive misconduct” that has been consistently demonstrated throughout the litigation, according to the federal court in Manhattan. They emphasized that a publicly traded business like Tesla should not permit its CEO to unilaterally align the legal defense with his interests. The plaintiffs argued that objective attorneys should oversee and defend the proceedings. They emphasized that lawyers, not people who just comply without question, should litigate and defend cases in court.
Musk and Tesla have angrily rejected all of the accusations and have asked the court to throw out the lawsuit in response. Despite the obstacles, the debate over Dogecoin and Elon Musk’s part in the cryptocurrency’s rapid ascent and subsequent decline continues to grab the attention of both the crypto community and the financial markets. The outcome of the case might have a big impact on the cryptocurrency industry and the responsibility of powerful people in the digital asset area as it moves forward.