The complaint was filed in early June this year in the Southern District of New York and says that Musk took various steps to violate financial laws in the US.
Last year, a lawsuit was filed against South African businessman and billionaire Elon Musk. The lawsuit alleges that Musk took steps to manipulate the price of Dogecoin, which he has liked and highly spoken of for some time.
The plaintiffs in the lawsuit claim to have lost millions of dollars during the 2022 bear market and blame the SpaceX founder for his alleged role in their losses.
Investors proposing a class action lawsuit accused Tesla CEO Elon Musk of deliberately increasing the price of Dogecoin by more than 36,000% in two years and then letting it crash. They included their latest allegations in a proposed third amended complaint.
In early June, US District Judge Alvin Hellerstein said he would “probably” allow the third amended lawsuit, saying the defendants would likely not be biased.
Elon Musk’s Lawsuit Changed
Apparently, the lawsuit against Musk has taken a new turn by including insider trading charges. The complaint says Musk took various steps to violate financial laws in the US The document reads as follows:
“This is a securities fraud class action lawsuit arising out of a deliberate course of carnival barking market manipulation and inside trading by the world’s richest man, Elon Musk, who hijacked an emerging pop culture phenomenon to promote himself and his enterprises, and to paddle his obscene fortune, by drawing on the fervent hopes of vulnerable Americans, including war veterans, manual workers, and the elderly.”
One piece of evidence the complaint is using against Musk is that he briefly changed the Twitter logo from its recognizable blue bird to the Dogecoin dog. Once this occurred, Doge’s price increased by as much as 30 percent in a short period, though the price dropped rapidly once the logo was changed again.
However, during the time of the switch and the subsequent price hike, Musk is accused of dumping up to $100 million on Doge, thus making a huge profit. It is also alleged that he profited from paid influencers and that his company Tesla traded in the coin and gained inside knowledge about Doge’s activity. The complaint continues with the following:
“Musk traded Dogecoin in a profitable manner through one or more domestic wallets and exchanges using prior knowledge then unknown and not disclosed to Dogecoin investors generally or publicly of his own intended movements to manipulate the market. Tesla, Inc. also traded profitably through one or more domestic wallets and exchanges during the class period, because it was advised of this information by defendant Musk.”
Did He Make People Lose Doge?
Musk has repeatedly worked to get the currency lawsuit thrown out of court, claiming that he never forced anyone to invest in cryptocurrency. The fact is that he is a Doge fanatic who has tried to talk about it whenever he could, but he hasn’t held a gun to anyone’s head and forced them to invest at the cost of their lives. The amended complaint ends with these assertions:
“In subsequent tweets, Musk, who had tens of millions of Twitter followers at the time, called himself ‘the Dogefather’ and has twittered about Dogecoin more than a hundred times since.”
By Marina Meza
