Musk was accused of using Twitter and SNL for Dogecoin price manipulation.

The lawsuit alleges Musk inflated Dogecoin’s price by 36,000% before a crash.

The legal battle against Musk and Tesla for market manipulation continues.

According to recent reports, billionaire entrepreneur and Tesla’s chief, Elon Musk, entangled in legal difficulties. A suit lodged in Manhattan’s federal court alleges that Musk engaged in market manipulation and insider trading of Dogecoin, a widely recognized memecoin.

This recent drama showcases a power clash between the outspoken billionaire and the cryptocurrency community. Musk renowned for his public presence, often using Twitter as his preferred platform. 

Based on reports, his online antics said to have crossed the line this time. The complaint alleges Musk exploited various platforms, including Twitter and a “Saturday Night Live” appearance, to manipulate the price of Dogecoin for his strategic gain.

In addition, investors are drawing attention to Musk’s strategic divestment of Dogecoin, totaling around $124 million. This action occurred around the same time as Musk’s decision to replace Twitter’s logo with Dogecoin’s Shiba Inu mascot, which caused the memecoin’s value to spike by 30%.

Further complicating the matter is Musk’s acquisition of Twitter in the previous year. This has led to accusations that Musk used the social media platform to further his interests in unfair ways toward investors.

Defrauded Investors Seek Justice: The Alleged Price Inflation and Crash

Dogecoin investors, feeling cheated and seeking justice, have raised their voices in unison. According to the lawsuit, Musk’s actions have described as a “deliberate course of carnival barking, market manipulation, and insider trading.” They believe these tactics defrauded them and were a marketing stunt for Musk’s brand and companies.

Significantly, the lawsuit alleges Musk deliberately inflated Dogecoin’s price by over 36,000% within two years before allowing it to crash. As a result, causing considerable financial losses for the investors. 

On the other hand, despite efforts by Musk and Tesla to get the earlier complaint dismissed, U.S. District Judge Alvin Hellerstein has suggested that the third revised complaint will probably move forward. As this situation develops, it starkly underlines the significant risks inherent in the unpredictable realm of cryptocurrencies. Moreover, the watchful eyes of the crypto community and the public set on Elon Musk as he embarks on this legal journey.

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Filed under: Bitcoin - @ June 1, 2023 10:10 pm