Elon Musk and his legal team have reportedly requested the dismissal of a $258 billion lawsuit filed by investors who claimed he operated a pyramid scheme to promote the cryptocurrency Dogecoin.
The lawsuit was filed in June 2022 by Dogecoin investors who accused Musk of manipulating the price of the cryptocurrency and then letting it crash. The investors cited Musk’s Saturday Night Live appearance in May 2021, where he called Dogecoin “a hustle,” as evidence of his involvement in the alleged scheme.
Musk’s lawyers argued that the lawsuit was a “fanciful work of fiction” and that his social media support for Dogecoin, including tweets such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” was too vague to warrant a fraud claim.
They referred to Musk’s statements as “innocuous and often silly tweets” and stated that there was nothing unlawful about tweeting words of support for a legitimate cryptocurrency.
The lawyers urged the judge to throw out the multibillion-dollar lawsuit and argued that Musk’s efforts to reignite people’s enthusiasm for Dogecoin after his television appearance were evidence of his innocence.
Musk told his Twitter followers just days after the appearance that he was working with Dogecoin developers to improve the system’s efficiency and that it could be “potentially promising.” He also stated during a market crash in March 2022 that he would not sell his crypto holdings, including Bitcoin, Ether, and DOGE.
The investors’ lawyer, Evan Spencer, reportedly stated in an email that they were “more confident than ever” that their case would be successful.
However, Musk’s legal team believes that the lawsuit lacks merit and is nothing more than an attempt to extract a large sum of money from Musk.
The accusations against Musk highlight the challenges of regulating cryptocurrencies and the role of social media in the market.
Musk’s tweets have been known to influence the price of cryptocurrencies, and his statements about Dogecoin have caused significant fluctuations in its value. However, it remains to be seen whether his tweets can be considered fraudulent or whether they are simply an expression of his personal opinions.
Elon Musk & Doge Lawsuit
In conclusion, the lawsuit against Elon Musk highlights the complex legal issues surrounding cryptocurrencies and their regulation.
While investors have accused Musk of operating a pyramid scheme to promote Dogecoin, Musk’s legal team has argued that his social media support for the cryptocurrency was too vague to be considered fraudulent.
The outcome of the lawsuit remains to be seen, but it raises important questions about the role of social media in the cryptocurrency market and the need for clear regulations to protect investors.