Elon Musk is facing a class action lawsuit that claims he engaged in insider trading and Dogecoin price manipulation, defrauding investors of billions of dollars.
Elon Musk, a multibillionaire businessman, is used to being in the media spotlight constantly. A lawsuit accusing billionaire businessman Elon Musk of insider trading and market manipulation in relation to the well-known cryptocurrency Dogecoin has recently been filed against him.
According to the lawsuit, Musk used a number of venues, including Twitter and his appearance on “Saturday Night Live,” to influence the price of Dogecoin and make money off investors.
Musk Is Accused of Swindling Cryptocurrency Investors
The lawsuit, which was filed in Manhattan federal court on Wednesday night, alleges that Musk used a variety of strategies, including paid online influencers, Twitter posts, and other publicity stunts, to trade profitably through numerous Dogecoin wallets that he or his electric vehicle company, Tesla, controlled.
Investors claim that as a result of Musk’s conduct, they suffered huge financial losses while he enjoyed significant gains.
Musk’s sale of almost $124 million worth of Dogecoin in April is one purported piece of evidence cited in the lawsuit. A 30% increase in Dogecoin’s price resulted from the transaction and his choice to switch Twitter’s blue bird emblem for the Shiba Inu dog logo.
The 51-year-old CEO of Tesla finally purchased the microblogging service for a staggering $44 billion in October of last year, as previously reported by CoinGape, following various discussions and objections.
DOGE Investors Demand Justice Following Billions of Losses
According to the lawsuit, Musk is accused of engaging in a “deliberate course of carnival barking, market manipulation, and insider trading.” Investors claim that Musk used these measures to promote himself and his businesses in addition to defrauding them.
Additionally, according to the court document, Musk deliberately raised the price of Dogecoin by more than 36,000% over the course of two years before allowing it to crash, causing significant financial losses for anyone who invested in the meme currency
In an ongoing case that was started in June of the previous year, these most recent accusations are included in a third amended complaint that is being considered.
In a previous motion for dismissal, Musk and Tesla claimed that the second amended complaint was a “fanciful work of fiction” and should be rejected. But on May 26, U.S. District Judge Alvin Hellerstein said he was likely to approve the third amended complaint, suggesting that the defendants would not suffer any harm.
Musk is being sued for allegedly engaging in insider trading and market manipulation with respect to Dogecoin. The lawsuit was filed in the U.S. Court of the Southern District of New York.
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