In a filing submitted late Wednesday night in Manhattan federal court, investors alleged that Musk used Twitter posts, paid online influencers
Elon Musk Accused of Manipulating Dogecoin Price
Elon Musk Accused of Manipulating Dogecoin Price: Investors proposing a class action lawsuit have accused Tesla CEO Elon Musk of manipulating the cryptocurrency Dogecoin and engaging in insider trading, causing them billions of dollars in losses.
In a filing submitted late Wednesday night in Manhattan federal court, investors alleged that Musk used Twitter posts, paid online influencers, his 2021 appearance on NBC’s “Saturday Night Live,” and other “publicity stunts” to trade profitably at their expense through multiple Dogecoin wallets that he or Tesla controls.
According to investors, this included Musk’s sale of approximately $124 million worth of Dogecoin in April after he replaced Twitter’s blue avian logo with Dogecoin’s Shiba Inu dog logo, resulting in a 30% price increase.
According to the filing, a “deliberate course of carnival barking, market manipulation, and insider trading” enabled Musk to defraud investors and promote himself and his companies.
In October 2014, Musk acquired Twitter. He also operates SpaceX, a rocket and spacecraft manufacturer, and Tesla, a manufacturer of electric vehicles.
Musk and Tesla’s attorney, Alex Spiro, declined to comment on Thursday. The investor’s attorney did not respond promptly to requests for comment.
Investors have accused Musk, the second-wealthiest person in the world according to Forbes, of artificially inflating Dogecoin’s price by more than 36,00% over two years and then allowing it to collapse.
In a proposed third amended complaint, they included their most recent allegations in a lawsuit that began in June of last year.
Musk and Tesla sought dismissal of the second amended complaint in March, labelling it a “fanciful work of fiction,” and on May 26 stated that a third amendment was unwarranted.
In an order issued on Wednesday, U.S. District Judge Alvin Hellerstein stated that he would “likely” permit the third amended complaint, stating that the defendants would likely not be prejudiced.
Additionally, Judge Hellerstein granted the investors’ request to dismiss the Dogecoin Foundation as a defendant. Its attorney, Seth Levine, referred to the dismissal as “the appropriate result.”
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