Elon Musk Under Fire for Dogecoin Price Manipulation in Legal Battle
In a significant development in the ongoing legal battle between Elon Musk, CEO of Tesla and SpaceX, and a group of plaintiffs, new evidence has emerged regarding Musk’s crypto trading and promotional activities. The amended legal case, filed on May 31, highlights previously undisclosed information that supports the allegations of market manipulation against Musk.
One of the notable pieces of evidence mentioned in the filing revolves around an incident involving Twitter. The plaintiffs claim that Musk briefly replaced Twitter’s iconic bird logo with the logo of Dogecoin, a cryptocurrency known for its association with the entrepreneur.
Strikingly, this change coincided with a 30% surge in Dogecoin prices, which were then followed by a subsequent decline after the original logo was restored. Although the filing suggests that this incident took place in April 2022, it is clarified that it actually occurred in April 2023, aligning with the alleged market fluctuations.
The amended legal case also argues that Musk took responsibility for the “Dogecoin enterprise as a whole” and asserts his fiduciary relationship with the asset, which is crucial for a claim of insider trading. Additionally, the filing claims that Dogecoin should be classified as a security under the Exchange Act. It further states that Musk’s and Tesla’s Dogecoin “whale” wallets, referring to wallets with large holdings of the cryptocurrency, have been identified.
Furthermore, the legal document alleges that Musk manipulated the Bitcoin market during Tesla’s involvement in Bitcoin trading. Since 2021, Tesla has engaged in buying and selling Bitcoin. The plaintiffs assert that Musk’s actions had a direct impact on the market.
In a significant move, the amendment seeks to remove The Dogecoin Foundation as a defendant in the case. Separate reports from Reuters indicate that the judge overseeing the case has granted this request.
These latest revelations come in response to Musk and Tesla’s attempt to have the case dismissed in April 2023. By introducing new facts and evidence, the plaintiffs aim to substantiate their claims and prevent the case from being dismissed outright. The intention is to show that the allegations against Musk and Tesla are not baseless and should be further investigated.
According to Reuters, the U.S. judge presiding over the case has expressed his inclination to allow the amended complaint, which is the third modification made to the original filing. This suggests that the plaintiffs may have a viable case and that the legal proceedings will continue to unfold.
As this legal battle progresses, it remains to be seen how the court will evaluate the evidence presented and determine the outcome. The allegations of market manipulation against Elon Musk, a prominent figure in the cryptocurrency world, have raised significant concerns and garnered considerable attention within the industry.
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