Elon Musk, the CEO of Tesla and a billionaire entrepreneur, has been accused of market manipulation and insider trading of Dogecoin, a popular memecoin. A lawsuit filed in Manhattan’s federal court has alleged that Musk used various online platforms, including Twitter and a “Saturday Night Live” appearance, to manipulate the price of Dogecoin
This development signifies a clash of power between the headstrong billionaire and the wider cryptocurrency community. Musk is known for his public presence and often uses Twitter to communicate.
However, for this particular case, Musk’s tweets and actions allegedly crossed a line. Musk is said to have exploited social media to manipulate the value of Dogecoin for his private gain, which has led to investors initiating legal action against him.
Additionally, investors are drawing attention to Musk’s $124 million divestment from Dogecoin around the same time that he replaced Twitter’s logo with Dogecoin’s Shiba Inu mascot. This move caused a 30% spike in the value of the memecoin, complicating the situation further.
Furthermore, Musk’s acquisition of Twitter has led to allegations that he used the social media platform unfairly to further his interests.
Investors Seeking Justice After Alleged Price Inflation and Crash
Investors who own Dogecoin feel cheated and are demanding that Musk face the consequences. According to the lawsuit, Musk’s actions are described as a “deliberate course of carnival barking, market manipulation, and insider trading.” They argue that his actions defrauded them and were only a marketing campaign for his companies.
The lawsuit alleges that Musk inflated Dogecoin’s value by over 36,000% before crashing it, resulting in significant financial losses for investors.
Despite Musk and Tesla’s attempts to have the initial complaint dismissed, U.S. District Judge Alvin Hellerstein has suggested that the revised complaint will likely go ahead. This situation emphasizes the risks associated with cryptocurrencies while also putting Musk in the public eye as he navigates this legal battle.
Article compiled by Coinbold
