Elon Musk Faces New Lawsuit Alleging Dogecoin Manipulation

Key Points:

• Elon Musk is facing a new class-action lawsuit filed by US investors, alleging insider trading and price manipulation of Dogecoin (DOGE).
• The lawsuit claims that Musk’s promotional actions, including social media mentions and television appearances, artificially inflated the price of Dogecoin, causing substantial financial losses to investors. The plaintiffs are seeking $258 billion in damages.

The lawsuit claims that Elon Musk’s actions caused significant financial losses to the investors, amounting to hundreds of billions of dollars.

The lawsuit, filed in a Manhattan court, alleges that during 2021, Elon Musk engaged in various activities to promote Dogecoin, including frequent mentions on his personal Twitter page and promoting the cryptocurrency on US television. The investors claim that these actions artificially inflated the price of Dogecoin, allowing Musk to profit through a series of Dogecoin wallets under his control. They argue that Musk manipulated the DOGE price, causing it to surge by as much as 36,000% before crashing.

The group of investors also highlights an incident in April 2023 when Musk sold $124 million worth of DOGE shortly after replacing the Twitter logo with the Dogecoin logo on his social media profile. This move allegedly triggered a 30% price spike in Dogecoin at that time.

The lawsuit, which began in June 2022, also accuses Musk of directing his companies, Tesla and SpaceX, to accept DOGE payments to create a false perception that Dogecoin was a viable investment. The investors are seeking $258 billion in damages from Musk, Tesla, and SpaceX.

Elon Musk’s legal team has been attempting to dismiss the case, dismissing the presented details as “fictitious.” However, a Manhattan court judge has agreed to review the lawsuit, emphasizing that the investor group has no prejudice against Musk.

In a recent development, at the end of May, Musk cautioned the community against putting “all hands” on Dogecoin. This warning comes amidst the ongoing legal proceedings and heightened scrutiny surrounding his involvement with the cryptocurrency.

Elon Musk finds himself entangled in yet another legal battle as a group of US investors accuses him of insider trading and manipulating the price of Dogecoin. The lawsuit alleges that Musk’s actions caused significant financial harm to the investors, who are seeking substantial damages. As the legal proceedings unfold, the cryptocurrency community continues to closely follow the case’s developments and the potential implications for Elon Musk’s involvement in the cryptocurrency market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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