Elon Musk Seeks Dismissal of $258 Billion Dogecoin Lawsuit

Elon Musk's Legal Battle Over Dogecoin

Elon Musk has called for the dismissal of a $258 billion lawsuit accusing him of operating a pyramid scheme to support Dogecoin. The lawsuit, filed by Dogecoin investors, claims Musk manipulated the cryptocurrency’s value for profit.

Legal Defense and Arguments

Musk’s legal team presented their case in a Manhattan federal court, describing the lawsuit as a "fantastical work of fiction." They argued that Musk’s tweets about Dogecoin were harmless and lacked any intent to deceive. The defense highlighted that Musk’s statements, such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” were too vague to support claims of fraud.

Claims Against Musk

The investors allege that Musk artificially inflated Dogecoin's value by over 36,000% in two years before its decline, profiting at the expense of other investors. They point to Musk’s "Saturday Night Live" appearance, where he referred to Dogecoin as a "hustle," as evidence of his alleged manipulation. The lawsuit seeks $258 billion in damages, a figure representing three times the estimated market decline of Dogecoin.

Defense's Position on Cryptocurrency Status

Musk’s lawyers also contested the classification of Dogecoin as a security, arguing that supporting a legitimate cryptocurrency through tweets is not unlawful. They urged the court to dismiss the case, emphasizing the lack of concrete evidence to substantiate the investors' claims.

Response from Investors

Despite the dismissal request, the investors’ attorney expressed confidence in the success of their case. The Dogecoin Foundation, also named in the lawsuit, is similarly seeking dismissal. The legal proceedings continue as both parties await the court's decision on the dismissal motion.

This case underscores the ongoing legal complexities surrounding cryptocurrency endorsements and market influence.