- Investors accuse Musk of manipulating the price of Dogecoin
- They claim that the businessman used publicity stunts for profitable trading
- Elon’s lawyers declined to comment.
Elon Musk has been the target of domestic trading allegations in a class action lawsuit filed by investors. They accuse the CEO of Tesla and Twitter in manipulating the price of the DOGE token, which led to losses in the billions.
In their statement, filed in federal court in Manhattan on the evening of May 31, investors noted that Elon Musk used various methods to profit from trading. It’s about Twitter posts and his 2021 appearance on NBC’s ‘Saturday Night Live’. It is noted that the billionaire carried out such actions using several Dogecoin wallets controlled by him or Tesla.
Elon Musk sold roughly $124 million in Dogecoin in April, according to investors. This sale comes after Musk changed his Twitter logo, replacing it with a blue bird for Dogecoin’s Shiba Inu dog logo. This change led to a 30% increase in the price of the coin.
Investors accuse Elon Musk of deliberately increasing the price of the Dogecoin cryptocurrency by more than 36,000% over the course of two years, and then allowing it to plummet. The allegations were included in a “proposed third amended complaint” as part of a lawsuit that began last June.
In March, Musk and Tesla demanded that the second amended complaint be dismissed, calling it a “fantastic fiction,” and on May 26 they said that another amendment was unreasonable.
On Wednesday, May 31, U.S. District Judge Alvin Hellerstein said he was likely to allow the third amended complaint, believing it would not prejudice the defendants.
Elon Musk’s lawyer and Tesla’s Alex Spiro declined to comment on Thursday.