Elon Musk Wins Dismissal of Dogecoin Lawsuit, Bringing Relief to the Billionaire and His Cryptocurrency

A lawsuit was filed against Musk and his electric vehicle company Tesla accusing them of defrauding investors by hyping Dogecoin and conducting insider trading.

Elon Musk, the founder of Tesla and owner of social media platform X (formerly Twitter), has won the dismissal of a lawsuit against him. The lawsuit was filed against Musk and his electric vehicle company, accusing them of defrauding investors by hyping Dogecoin and conducting insider trading.

On Thursday, U.S. District Judge Alvin Hellerstein in Manhattan dismissed the lawsuit, bringing relief to Musk and his electric vehicle company.

Investors' Claims Fail to Stick

The lawsuit, which was amended four times over two years, claimed that Musk used his influence, particularly through Twitter and his appearance on NBC's “Saturday Night Live,” to manipulate Dogecoin's price.

Investors claimed that Musk drove the price of Dogecoin up by 36,000% over the period of two years. He then sold his Doge holdings, causing the price to crash. This resulted in huge financial losses for investors. They also alleged that he was involved in insider trading, timing his trades to coincide with his public statements.

One instance that stood out was when Musk changed the logo of Twitter from the blue bird to the Dogecoin logo in April 2023. This incident was highlighted by the investors as it caused the price of cryptocurrency to spike by 30%. Musk is alleged to have sold his Doge holdings shortly afterward.

Judge Hellerstein's Ruling

However, Judge Hellerstein was not convinced with the claims of the investors. He stated that the tweets by Elon Musk related to Dogecoin were merely his aspirations and were not meant to be taken literally. He also pointed out that no reasonable investor could ever rely on such tweets, and this cannot be the basis for a security fraud claim.

Hellerstein also found the insider trading claims to be too vague, stating that it was “not possible to understand” the accusations. With these conclusions, the judge dismissed the case with prejudice, meaning it cannot be refiled.

A Win for Elon Musk and Dogecoin

Alex Spiro, lawyer of Elon Musk celebrating this win said that it is a very good day for Dogecoin. The legal team of Elon Musk maintained that his tweets were absolutely harmless and there is no evidence of any illegal activity related to Dogecoin trading.

The Takeaway

Elon Musk is known for his comic tweets about various cryptocurrencies, and his statements should not be taken as a signal to buy or sell some crypto. For now, this ruling clears the name of Elon Musk from any wrongdoing with Dogecoin. As for the future of Dogecoin, we will have to wait and see how this affects its price.

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