Last Updated on June 19, 2023 by COINBUZZFEED
Tesla CEO Elon Musk is facing a class action lawsuit filed by investors who claim that he engaged in insider trading and manipulated the cryptocurrency Dogecoin. The investors allege that Musk utilized various tactics, including social media posts, paid influencers, and a prominent appearance on NBC’s Saturday Night Live, to trade Dogecoin for personal profit while causing substantial losses for others.
The Allegations:
According to the lawsuit, Elon Musk employed Twitter posts, paid online influencers, and his appearance on Saturday Night Live to trade Dogecoin profitably at the expense of other investors. It is claimed that Musk and Tesla controlled several Dogecoin wallets, which were allegedly used for market manipulation and securities fraud related to Dogecoin.
One notable incident highlighted in the lawsuit is Musk’s sale of approximately $124 million worth of Dogecoin in April. This transaction occurred shortly after he replaced Twitter’s iconic blue bird logo with Dogecoin’s Shiba Inu dog logo, resulting in a significant 30% surge in Dogecoin’s price.
Musk’s Response:
Elon Musk has vehemently denied the allegations of owning Dogecoin wallets associated with insider trading in light of the ongoing class action lawsuit. While his lawyer, Alex Spiro, has refrained from commenting extensively on the matter, Musk has maintained his innocence regarding the accusations. It remains to be seen how these claims and counterclaims will play out in the legal proceedings.
Implications and Potential Consequences:
The class action lawsuit against Elon Musk carries significant implications for both the cryptocurrency industry and investor trust. If the allegations are proven true, it could tarnish Musk’s reputation and raise concerns about the potential abuse of influence by prominent figures in the crypto market. Additionally, it may lead to regulatory scrutiny and increased calls for stricter oversight of digital currencies.
