Tesla Inc. CEO Elon Musk, the richest man in the world with a net worth of over $239 billion according to the Forbes Real-Time Billionaires List, has long been bullish on Dogecoin (DOGE), the original meme coin, and has tweeted about his interest in it, driving its value significantly over the years.
At its peak, Dogecoin was considered to be the fifth most valuable cryptocurrency in the world, with a market value of more than $80 billion. However, like most cryptocurrencies, Dogecoin had a devastating crash during the 2022 crypto winter.
Investors proposing a class action lawsuit accused Musk of engaging in insider trading and manipulating the Dogecoin, resulting in substantial financial losses amounting to billions. According to a filing in Manhattan federal court in June, investors claim that Musk used various means such as Twitter posts, payments to online influencers, his 2021 appearance on NBC’s “Saturday Night Live,” and other attention-grabbing tactics to trade Dogecoin for his own gain at their expense. The transactions were allegedly conducted through multiple Dogecoin wallets controlled either by Musk personally or by Tesla.
The filing stated that through a calculated series of insider trading, carnivallike publicity and market manipulation, Musk deceived investors while simultaneously promoting himself and his companies. Investors have leveled accusations against Musk, asserting that he intentionally inflated Dogecoin’s price by 36,000% over a span of two years, only to allow it to plummet.
In a submission presented to the federal court in Manhattan, the lawyers representing the Dogecoin investors urged the judge to dismiss Musk’s legal team, citing a consistent pattern of “derogatory and oppressive misconduct” displayed throughout the course of the case.
Musk has vehemently denied these allegations and has tried to get the court to dismiss the lawsuit. In March, both Musk and Tesla attempted to have the second amended complaint dismissed, calling it a “fanciful work of fiction.”
The latest allegations have been included in a proposed third amended complaint, part of an ongoing lawsuit that commenced in June of the previous year. Musk’s attorney Spiro requested the retraction of the amended complaint.
Insider trading and market manipulation allegations continue to surround Elon Musk and the cryptocurrency Dogecoin. Investors and the legal team have accused Musk of intentionally deceiving investors, while Musk has denied the claims and has tried to get the lawsuit dismissed. The case is ongoing and the future of Dogecoin remains uncertain.