Key Highlights:
- Elon Musk, the CEO of Tesla, is involved in a legal battle over accusations that he artificially inflated the price of Dogecoin, a crypto he openly promotes.
- Investors assert that Musk or Tesla influenced several of the Dogecoin wallets utilized in these transactions.
In the midst of his continuing class action lawsuit for market manipulation and securities fraud related to the meme coin, billionaire Elon Musk has refuted claims that he owns Dogecoin (DOGE) wallets.
A $258 billion lawsuit for an alleged Dogecoin pyramid scheme is now being filed against Tesla’s founder and CEO, as well as the CEO of Twitter, for a brief period. According to the lawsuit, Musk participated in a racketeering plot to support crypto.
According to court documents, two wallets connected to Musk allegedly sold 1.4 billion Dogecoins over two days in April, totaling more than $124 million. Alex Shapiro, Musk’s attorney, rejected the allegations, claiming they lacked merit and supporting documentation. The lawsuit, which a group of DOGE investors modified, accuses Musk of manipulating the market and abusing his enormous Twitter following.
Accusations on Elon Musk (in detail)
The ongoing lawsuit asserts that Musk ran a pump-and-dump scheme and made money from selling $95 million worth of Dogecoins, a meme-based crypto. Musk is charged with participating in a Dogecoin pyramid scheme in the class-action lawsuit, requesting an astounding $258 billion in damages.
The most recent update to the complaint was submitted on June 7 in a federal court in Manhattan, and related transactions between April 3 and April 6 to digital wallets purportedly linked to Musk and Tesla. These dates fell when Musk, using his Twitter account, changed Twitter’s recognizable bluebird emblem to a Shiba Inu to represent Dogecoin.
On April 4, 2023, the logo underwent a modification that lasted for roughly 3 days. Later, Musk claimed that he updated the logo as a joke and had no intention of deceiving anyone.
