Elon Musk Dodges $259B Lawsuit as Dogecoin Investors Withdraw Case
A lawsuit accusing Elon Musk of manipulating the price of Dogecoin has come to a close as investors have decided to withdraw their appeal after a court found no evidence of fraud. The lawsuit, filed in 2022, claimed that Musk and Tesla Inc. engaged in fraud and insider trading to manipulate DOGE prices. However, District Judge Alvin Hellerstein dismissed the case earlier this year, stating that the claims lacked legal basis.
The investors, seeking $258 billion in damages, alleged that Musk used tweets and media appearances to artificially inflate Dogecoin’s value for personal gain. Examples cited included Musk’s 2021 Saturday Night Live appearance and his tweet referring to Dogecoin as the “future currency of Earth.” Despite these allegations, the court found no evidence of insider trading or market manipulation.
Both parties agreed to end the legal battle, with the investors withdrawing their appeal and Musk’s team dropping their motion for sanctions against the investors’ lawyer. The investors also abandoned their request for sanctions against Musk’s lawyers, who were accused of interfering with the appeal by requesting excessive legal fees.
The stipulation to dismiss the appeal and related motions was filed in Manhattan federal court and is awaiting final approval from Judge Hellerstein. Elon Musk, known for his influence on crypto markets, has faced criticism for his actions surrounding Dogecoin, raising questions about the regulatory challenges posed by prominent figures in speculative markets.
