Lawsuit: Elon Musk Refutes Ownership of Dogecoin Wallets
Tesla CEO Elon Musk is denying allegations that he owns Dogecoin wallets connected to insider trading amid an ongoing class action lawsuit. The lawsuit accuses Musk of participating in a racketeering scheme to support the meme-based cryptocurrency. According to court records, two wallets associated with Musk sold 1.4 billion Dogecoins, totaling over $124 million, in just two days in April. However, Musk’s attorney, Alex Shapiro, has dismissed these claims as baseless and lacking evidence.
Musk, who is known as the “Dogefather” and “Dogecoin CEO,” has been a vocal supporter of the meme coin and frequently shares tweets about it. Dogecoin, which was originally created as a joke in 2013, has gained significant popularity and market value, currently ranking as the eighth largest cryptocurrency with a market capitalization of around $8.7 billion.
The lawsuit against Musk alleges that he engaged in manipulative practices to inflate the price of Dogecoin. It cites his influence on social media and his appearance on NBC’s Saturday Night Live as evidence of his alleged market manipulation. The court will ultimately determine whether Musk’s involvement with Dogecoin goes beyond mere trolling on Twitter.
This lawsuit has been amended by a group of Dogecoin investors who claim that Musk took advantage of his substantial Twitter following to manipulate the market for personal gain. The investors allege that Musk’s tweets and public statements about Dogecoin have artificially boosted its price, allowing him to sell off a significant amount of his holdings at a profit. They argue that this behavior constitutes market manipulation, a clear violation of securities laws.
Musk has faced controversy in the past for his tweets and public statements regarding cryptocurrencies. In 2018, he settled with the Securities and Exchange Commission (SEC) after he tweeted about taking Tesla private at $420 per share, causing Tesla’s stock price to surge. The SEC accused Musk of fraudulently misleading investors with his tweets. As part of the settlement, Musk agreed to step down as Tesla’s chairman and pay a fine.
The outcome of this latest lawsuit against Musk will depend on the evidence presented in court and the interpretation of securities laws. If found guilty of market manipulation, Musk could face significant legal and financial consequences. However, it is important to note that these allegations are currently unproven and Musk maintains his innocence.