End of $258B Dogecoin Lawsuit Requested by Musk
Tesla and SpaceX CEO Elon Musk and his attorneys are requesting that a US court dismiss a $258bn lawsuit alleging that Musk ran a Ponzi scheme to promote Dogecoin. The lawsuit was filed by Dogecoin investors in Manhattan last year, who accused Musk of using his position as the richest man in the world to drive the cryptocurrency’s price up more than 36,000% in two years, before allowing it to crash. Musk’s lawyers have dismissed the suit as “fanciful” and “a work of fiction”, with his support for Dogecoin on social media deemed “too vague” to qualify as fraud. The lawyers have also stated that his statements involving Dogecoin were “harmless and often foolish tweets”. Musk has faced several lawsuits over his social media activity previously, including over tweets relating to financing for Tesla to go private in 2018, although he was ultimately found not liable. Investors behind the present lawsuit have cited his 2019 appearance on Saturday Night Live, during which he called Dogecoin “a hustle”, as evidence of malpractice. The cryptocurrency lost a quarter of its value shortly after the broadcast, from $0.66 to $0.50.
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