Elon Musk, a well-known supporter of Dogecoin, is facing legal heat from Dogecoin investors who are accusing him of insider trading. This lawsuit reveals a new twist in Musk’s relationship with Dogecoin, which has hitherto been characterized by mutual support.
Musk’s Influence on Dogecoin
Musk’s significant role in elevating Dogecoin from a simple meme to its current status is well-known. His various actions, such as tweets about Dogecoin, his acquisition of Twitter, and even the recent replacement of Twitter’s Blue Bird logo, have all contributed to an increase in the price of DOGE.
Backlash from Investors
Despite his popularity, Musk has been facing legal challenges from investors. He had previously requested the dismissal of a $238 billion lawsuit that accused him of artificially inflating Dogecoin’s price. The latest development, however, sees the Tesla CEO accused of insider trading in a class-action lawsuit brought by DOGE investors.
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Details of the Lawsuit
The lawsuit, filed in a Manhattan federal court, alleges Musk of insider trading. The allegations range from using paid online influencers and making specific Twitter posts, to appearances on NBC’s “Saturday Night Live in 2021,” among other activities. According to the lawsuit, these actions made DOGE profitable through various wallets owned by Tesla and Musk.
The plaintiffs stated, “A deliberate course of carnival barking, market manipulation, and insider trading enabled Musk to defraud investors, promote himself and his companies.”
The investors also claim that Musk sold $124 million worth of Dogecoin when he replaced the Twitter logo with DOGE’s, a move that caused a considerable surge in the value of Dogecoin.
