Elon Musk and his legal team have requested a US judge to dismiss a $258 billion lawsuit filed by investors who accused him of operating a pyramid scheme to promote Dogecoin. The investors filed the lawsuit in Manhattan’s federal court on March 31, alleging that Musk manipulated the price of the meme-based cryptocurrency by making misleading statements on social media. Musk’s lawyers referred to the lawsuit as a “fanciful work of fiction,” stating that his Dogecoin-related comments were “innocuous and often silly tweets.” They argued that the tweets were too vague to warrant a fraud claim, and there is nothing illegal about tweeting words of support for a legitimate cryptocurrency like Dogecoin.
Investors’ Allegations against Elon Musk
The investors cited Musk’s appearance on Saturday Night Live, where he referred to Dogecoin as a “hustle” while portraying a fictitious financial expert. They claimed that Musk’s tweets and comments artificially inflated Dogecoin’s value, causing them significant financial harm. However, Musk’s lawyers argued that his tweets and comments did not contain any material misstatements or omissions, and they were not made with intent to deceive.
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Possible Outcome of the Lawsuit
While the case is still ongoing, it is unclear what the outcome will be. However, some legal experts suggest that the lawsuit may be difficult to win as it is challenging to prove that Musk’s tweets and comments were made with the intent to manipulate Dogecoin’s price. Moreover, Musk’s lawyers have argued that the investors have not suffered any real damages, as Dogecoin’s price has continued to hold a market cap of nearly $10 billion.
Dogecoin, a cryptocurrency that started as a joke in 2013, has gained popularity in recent years, thanks in part to Elon Musk’s support. The digital asset has become a favorite among retail investors and traders, with its price surging more than 10,000% since the beginning of the year. However, experts warn that Dogecoin’s value is highly speculative and volatile, and investors should exercise caution when investing in it.
