Elon Musk and Tesla Triumph: Dogecoin Manipulation Lawsuit Dismissed!

Elon Musk and Tesla Inc. have successfully had a lawsuit dismissed that accused them of manipulating the price of Dogecoin (DOGE) for personal gain. A U.S. District Judge in Manhattan ruled that the plaintiffs failed to provide convincing evidence, despite multiple revisions of their claims. The lawsuit alleged that Musk’s social media influence caused a 36,000% surge in Dogecoin’s price, followed by a crash that led to investor losses.

Court Clears Musk and Tesla of Dogecoin Manipulation Allegations

A lawsuit alleging that Elon Musk and his companies Tesla and SpaceX artificially inflated Dogecoin’s price was dismissed by U.S. District Judge Alvin Hellerstein in Manhattan. The judge ruled in favor of Musk, stating the plaintiffs failed to substantiate their claims.

The lawsuit was filed by Dogecoin investor Keith Johnson in June 2022. It claimed that Musk, Tesla, and SpaceX were involved in a crypto pyramid or Ponzi scheme using DOGE. The plaintiff described Dogecoin as “simply a fraud” that deceived investors into buying at inflated prices.

The plaintiffs argued that Musk used his social media influence and high-profile public appearances, including his 2021 hosting of NBC’s Saturday Night Live, to artificially inflate Dogecoin’s price by over 36,000% over two years. They alleged that after driving up the price, a crash occurred, leading to heavy losses for investors, while Musk and Tesla profited by timing their trades based on Musk’s endorsements.

In April 2023, Musk sought to have the case dismissed, arguing that there was no law against posting supportive or humorous tweets about a legitimate cryptocurrency. His legal team labeled the lawsuit a “fantasy” and urged the court to dismiss it.

Musk’s legal team noted that the plaintiffs had failed to make a convincing case despite multiple revisions of their lawsuit, initially seeking $258 billion in damages. They contended that Musk’s tweets were harmless and playful, with no evidence linking him or Tesla to the alleged suspicious trading activities or sales of Dogecoin.

What are your thoughts on the court’s decision to dismiss the lawsuit against Elon Musk regarding Dogecoin manipulation? Share your views in the comments section below.