The lawsuit between Twitter CTO Elon Musk and Doge investors is still raging. His lawyer filed a motion with the court today to dismiss the lawsuit, claiming that he abused his power and delayed the progress of the trial. However, taking into account Musk’s repeated praise of Dogecoin, it may really be possible for him to be sued.
(For information on Musk’s class action lawsuit involving Dogecoin insider trading and price manipulation, please see this article)
Musk's lawyer: There is no way to prove the connection between the two, and there is no misleading
According to New York federal court documents, Musk’s lawyer Alex Shapiro once again asked for the case to be dismissed today, saying that the plaintiff’s abuse of rights and bellicose litigation tactics had repeatedly delayed the progress of the case.
It is reported that the plaintiff’s attorney, Evan Spencer, amended the complaint three times in June and added more accusations. Shapiro said:
The plaintiff’s allegations will not support his position under review because the wallet involved in the sale of Dogecoin has no actual connection to him or Tesla. In addition, the complaint fails to prove whether Musk’s statements about Dogecoin are false or misleading.
Shapiro said Musk’s public expression of interest in Dogecoin on social media was not illegal and scoffed at Spencer’s amended complaint as whimsical and incomprehensible.
Shapiro has previously claimed that Spencer tried to interfere with the progress of the case through the media, while Spencer accused Shapiro of damaging the reputation of investors.
Evan Spencer is legally required to file an objection to the motion by September.
Musk's Dog Play
Even though he is surrounded by lawsuits, Musk, whose behavior has always made people confused, seems to have no scruples about it. He still occasionally tweets about Dogecoin on Twitter. ˋThe following are some of the more significant events.
In April 2019, Musk made his first public remarks about cryptocurrency: "Dogecoin may be my favorite cryptocurrency." Doge rose 25% in two days
In February 2021, Musk: “Dogecoin is the people’s currency.” Doge rose 150% in four days
In April 2021, Musk: "Doge barking at the moon." Doge rose 500% in four days
In May 2021, Musk and his mother appeared on "Saturday Night Live". The mother said: "I hope the Mother's Day gift I receive is not Dogecoin." Doge fell 35% in two days
In April 2023, the Twitter logo was changed to Dogecoin, and Doge rose by 38% in two days.
Is it illegal for a public figure to influence cryptocurrency prices?
Dogecoin was created for meme purposes in 2013. The price before 2020 can be said to be close to 0, until it was indirectly promoted by Musk repeatedly, causing its price to skyrocket by more than 15,000% in the first half of 2021. , however, it has now fallen by 90% from its historical high.
Delving into the correlation between Musk's tweets and the price of Dogecoin, the Blockchain Research Laboratory found through statistics that when he posts a tweet about Dogecoin, the price of Dogecoin will rise on average within 5 minutes. 8 %.
Law professor Eric Goldman explained that the mutual influence between new finance and online comments is still in a legal ambiguity and there are no specific regulations:
While Musk may not be charged by governments or regulators, his comments about highly volatile and poorly regulated markets could still be viewed as a potential liability for investor losses and subject to prosecution.
This article Musk and Dogecoin investors’ class action lawsuit | Lawyer filed a lawsuit claiming abuse of power and detailed Musk’s dog-playing actions first appeared on Chain News ABMedia.
