Elon Musk Confronts Legal Challenge in Connection with Alleged Dogecoin Scheme; Refutes Ownership of Wallets
Elon Musk, the billionaire behind companies like Tesla and SpaceX, is facing a class action lawsuit accusing him of market manipulation and securities fraud related to Dogecoin. The lawsuit alleges that Musk was involved in orchestrating a pyramid scheme centered around the meme-based cryptocurrency. According to court filings, Musk allegedly sold 1.4 billion Dogecoins, worth over $124 million, over a two-day period in April. The filing also identifies two wallets associated with Musk that were responsible for unloading the tokens. However, Musk’s legal representative has denied these allegations, stating that there is no evidence linking him to these wallets.
The lawsuit was amended in late May to include additional accusations of manipulative tactics by Musk to artificially inflate Dogecoin’s price. These tactics allegedly included using his Twitter following and appearance on Saturday Night Live to exert influence over the market. Musk has been vocal about his support for Dogecoin, often tweeting about it and referring to himself as the “Dogefather” and “Dogecoin CEO.”
Dogecoin, originally created as a satirical response to the cryptocurrency landscape in 2013, has experienced a surge in popularity and value. It is currently the ninth-largest cryptocurrency by market capitalization, with a market cap of $9 billion.
The accusations against Musk include insider trading and market manipulation, with investors claiming that they suffered financial losses as a result of his actions. They allege that Musk intentionally manipulated the price of Dogecoin for personal profit while causing harm to others. The investors describe his actions as a deliberate strategy aimed at defrauding investors while promoting himself and his companies.
The legal battle surrounding these allegations is ongoing, with a judge yet to determine the validity of the claims. In the meantime, Musk continues to face scrutiny over his involvement with Dogecoin and its impact on the market.