Key takeaways:
- The lawsuit accusing Elon Musk and Tesla, his electric car firm, of manipulating Dogecoin’s price and inflicting $258 billion in damages has been dismissed.
- Disgruntled Dogecoin investors sued Musk and Tesla in June 2022, claiming an astounding $258 billion in damages.
The lawsuit accusing Elon Musk and Tesla, his electric car firm, of manipulating Dogecoin’s price and inflicting $258 billion in damages has been dismissed.
In a ruling on August 29, the United States District Court for the Southern District of New York Judge Alvin Hellerstein dismissed the complaint.
According to Hellerstein, the defendants misrepresented in multiple instances the content of Musk’s tweets regarding Dogecoin, including his claims that he would take on the role of official CEO and that he might place a “literal” Dogecoin inside a SpaceX ship and launch it to the moon.
“These statements are aspirational and puffery, not factual, and susceptible to being falsified […] and no reasonable investor could rely upon them.”
Disgruntled Dogecoin investors sued Musk and Tesla in June 2022, claiming an astounding $258 billion in damages.
The investors said that Musk increased the price of Dogecoin by “more than 36,000% over two years and then let it crash.” Musk allegedly used his pedestal as the richest man in the world to operate and manipulate the Dogecoin Pyramid Scheme, according to their other allegations.
On March 31, Musk asked for the lawsuit to be dismissed. His attorneys called the allegations and the $258 billion damages demand in a federal court in New York “fanciful work of fiction.”
After hearing of the termination on August 29, the price of Dogecoin did not move; it had only increased by 0.1% in the previous day. According to CoinGecko data, Dogecoin is currently trading for $0.10 and has decreased 20% over the past month.
Pavel Durov was released from custody and put under court monitoring following his prosecution by French authorities and court appearance. Durov may be seen exiting a Paris courtroom on August 28 in a widely shared footage from the Russian state news agency RIA Novosti.
