Key Takeaways
- The lawsuit, filed in June 2022, accuses Musk of deliberately inflating the price of DOGE, causing substantial losses for retail investors.
- Musk’s lawyer stated that the claim of Musk owning specific wallets is “without basis
Tesla CEO Elon Musk is facing legal challenges yet again, as a recent letter obtained by the New York Post reveals his denial of being a dogecoin (DOGE) whale and engaging in pump-and-dump activities with the popular meme coin. The lawsuit, filed in June 2022, accuses Musk of deliberately inflating the price of DOGE, causing substantial losses for retail investors.
In response to the allegations, Musk’s attorney, Alex Spiro, firmly asserted in a written communication to the plaintiff’s lawyer that the claim of Musk owning specific wallets is “without basis.” Spiro’s letter stated, “You are wrong. The sole basis for your claim is that these wallets sold dogecoin at a time when, according to the third amended complaint, prices were up.”
The latest accusations against Musk involve insider trading, with plaintiffs’ lawyers claiming that his Twitter logo change from the blue bird to the Dogecoin logo was part of his alleged scheme. However, Musk’s attorney contends that these claims are unfounded and that Musk is not the DOGE whale portrayed by the accusers.
The lawsuit asserts that Musk intentionally manipulated Dogecoin’s price by causing a significant surge of over 36,000% in a span of two years, only to allow it to crash afterward. The plaintiffs, who seek to file a proposed third amended complaint, argue that Musk’s actions constitute a “crypto pyramid scheme.” They claim that retail investors and the class have collectively lost approximately $86 billion due to this alleged scheme.
Earlier in April, Musk’s legal team attempted to have the case dismissed, arguing that there was no wrongdoing in tweeting about a legitimate currency. However, the plaintiffs maintain their position, contending that Musk’s involvement in the crypto market was not driven by legitimate intentions.
These legal challenges add to the ongoing scrutiny faced by Musk, who is currently ranked as the world’s second-richest person, according to Forbes magazine. As the case continues to unfold, the allegations against Musk will be subject to thorough investigation and legal proceedings to determine the veracity of the claims made against him.
