Famous American billionaire Elon Musk and his company Tesla won the lawsuit filed over the alleged manipulation of Dogecoin (DOGE).
A US federal lawsuit accusing Elon Musk and his company Tesla of defrauding investors by promoting the popular memecoin Dogecoin and engaging in insider trading has been dismissed, Reuters reports.
In the lawsuit seeking $258 billion from Elon Musk, the plaintiffs alleged that Musk and Tesla engaged in insider trading and used publicity stunts such as social media posts and television appearances to inflate the price of Dogecoin by more than 36,000% in two years before allowing it to crash, with Musk profiting from volatility in the price of DOGE through controlled wallets.
The plaintiffs specifically pointed to Elon Musk's decision to temporarily replace the Twitter logo with the dog DOGE in April 2023, which they said “caused the price to increase by 30%, allowing Musk to sell DOGE at an inflated price.”
Musk's lawyers argued that there was nothing wrong with his tweets about Dogecoin and that there was no evidence linking him to questionable wallets or confirming his sales of DOGE.
U.S. District Court Judge Alvin Hellerstein found that the plaintiffs did not present sufficient evidence that these activities constituted fraud or that Musk's statements on social media were intended to mislead investors.
The judge dismissed the case, stating that no reasonable investor could rely on Musk's Dogecoin tweets to make investment decisions.
“The accusatory statements in the lawsuit are untrue, exaggerated, and subject to distortion […] and no reasonable investor can trust Musk's tweets.”
DOGE price did not react much to the decision to dismiss the case. DOGE, which has fallen by 6.7% in the last 7 days and 0.7% in the last 24 hours, continues to be traded at $0.0999 at the time of writing.
*This is not investment advice.
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