Alleged Insider Trading: Musk Faces Class-Action Suit Filed by Dogecoin ($DOGE) Investors
Elon Musk, CEO of Tesla and SpaceX, has been accused of insider trading in a proposed class-action lawsuit filed by investors who allege that he used social media to manipulate the value of cryptocurrency Dogecoin. They claim that Musk used Twitter posts, paid online influencers and high-profile public appearances to influence the cryptocurrency’s price, leading to losses amounting to billions of dollars. Investors assert that Musk, through his control over various Dogecoin wallets, was able to trade to his advantage. The suit cites a number of specific incidents of alleged manipulation, including a surge in Dogecoin prices following a move by Musk to replace Twitter’s blue bird logo with the Shiba Inu dog logo of Dogecoin. It is claimed Musk sold $124m worth of the cryptocurrency after its price surged. Musk and Tesla previously sought to dismiss a second amended complaint in relation to the allegations.