TLDR:
Elon Musk is sued by Dogecoin investors for allegedly manipulating the market and causing losses.
His lawyers argue that his tweets and jokes about Dogecoin are not illegal and the lawsuit is baseless.
Musk has been a vocal supporter of Dogecoin since 2019 and has influenced its price movements.
Article:
Elon Musk, the billionaire founder of Tesla and SpaceX, is facing a lawsuit from a group of Dogecoin investors who claim that he caused them financial harm by manipulating the market with his tweets and jokes about the cryptocurrency.
The lawsuit, which was filed in June 2023 and seeks $258 billion in damages, accuses Musk of engaging in a scheme of showmanship, market manipulation, and insider trading involving Dogecoin, one of the most popular meme coins in the crypto space.
The plaintiffs allege that Musk used his influence and popularity to artificially inflate the price of Dogecoin before his appearance on NBC’s “Saturday Night Live” in 2021, where he called it a “hustle” and caused it to crash. They also claim that he used his company, Tesla, to buy and sell Dogecoin secretly using anonymous digital wallets.
However, Musk’s lawyers have dismissed the lawsuit as frivolous and abusive. They have filed a motion to dismiss the amended complaint, arguing that Musk’s expressions of enthusiasm and humor about Dogecoin are protected by the First Amendment and do not constitute illegal market manipulation. They also contend that the plaintiffs have failed to provide any evidence that links Musk or Tesla to any of the alleged transactions involving Dogecoin.
Musk’s lawyers have criticized the lawsuit as “fanciful, meandering, and often incomprehensible” and have urged the court to put an end to the “abusive and belligerent litigation tactics” of the plaintiffs.
Musk has been a vocal fan of Dogecoin since 2019, when he tweeted that it might be his favorite cryptocurrency. He has since posted many tweets and memes about Dogecoin, often causing its price to fluctuate. He has also advocated for its adoption as a global payment system and has donated millions of Dogecoins to various causes.
