Investors Claim Twitter CEO Manipulated The Price Of Dogecoin Using His Status and Influence

According to court filings from the Manhattan federal court, Elon Musk is being accused of insider trading by Dogecoin investors in a class action lawsuit.

According to the lawsuit, the Tesla and Twitter CEO manipulated the price of the Cryptocurrency to his advantage costing them billions of dollars in the process.

As part of the court filings made in court on Wednesday, the investors cited Elon Musk’s Twitter posts, his 2021 appearance on Saturday Night Live (SNL), evidence of payments made to influencers, and also cited several publicity stunts by the billionaire as evidence of his alleged wrongdoing.

In the lawsuit, the investors state explicitly that Musk manipulated Dogecoin’s value using the above tactics and then proceeded to trade profitably using Dogecoin wallets owned and controlled by his estate or Tesla.

One such instance where Musk is accused of manipulating the price of Dogecoin is as recently as April 3rd, 2023. This was when Musk replaced the traditional Twitter logo with a brown Shiba Inu dog. The dog is the official logo of Dogecoin (DOGE).

This event is particularly significant to the case as after changing the logo, Mr. Musk sold $124 million worth of Dogecoin. This was after a 30% jump in the price of the cryptocurrency which Musk took advantage of.

As per the filing, a “deliberate course of carnival barking, market manipulation, and insider trading”, provided Musk with the opportunity to defraud investors of Dogecoin as well as promote himself and his companies.

Previous Complaints Of Elon Musk Manipulating Dogecoin

Dogecoin was officially launched n 2013 by software engineers Billy Markus and Jackson Palmer. T was launched jokingly as a fork (copy) of another cryptocurrency called Litecoin.

Over the years, the coin has garnered the attention of many high-profile investors including Elon Musk as well as a devoted following. This is mostly thanks to its low transaction fees and fast processing times.

It has a market cap of slightly over $10 billion as of June 2023. This ranks it as the ninth-largest cryptocurrency by market cap according to CoinGecko.

In June 2022, Dogecoin filed a lawsuit against Elon Musk accusing him of manipulating the coin freely for personal gain. The investors claim that he had intentionally driven the price of Dogecoin up by over 36,000 percent over several years, and then let it crash.

As per the lawsuit, which the current court filing is part of, Musk is being sued for $258 in damages. The current update is the third amendment to the lawsuit with the second coming back in March 2023.

After the second amendment made in March, Elon Musk and Tesla called for an immediate dismissal calling the complaint a “fanciful work of fiction.”

U.S. District Judge Alvin Hellerstein announced on Wednesday that he would “likely” allow the third amended lawsuit because the defendants were likely, not prejudiced.

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