Elon Musk and Tesla Triumph in Dogecoin Lawsuit Dismissal

August 30, 2024 William Ross Business, Cryptocurrency News, Finance, US Local News 0

He held that Musk’s statements on social media were “aspirational” rather than “factual an

Elon Musk and his electric vehicle company, Tesla, have successfully won the dismissal of a federal lawsuit that accused them of manipulating the price of the meme cryptocurrency Dogecoin.

Allegations of Market Manipulation

The lawsuit, which sought a staggering $258 billion in damages, alleged that Musk and Tesla used a “pyramid scheme” to defraud investors.

Elon Musk’s tweet, “One word: Doge,” sparked a frenzy among his followers on Twitter (now X). Additionally, it is alleged that Musk further drove up the price by announcing that Tesla would accept Dogecoin as payment for merchandise.

Investors claimed that Musk used his influential social media presence, including Twitter posts and a 2021 appearance on NBC’s “Saturday Night Live,” to artificially inflate Dogecoin’s price by over 36,000% over two years, only to let it crash later, reports LiveMint.

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Defense and Legal Arguments

Musk’s legal team countered these allegations by stating that the plaintiffs had no substantial case, despite filing five versions of the lawsuit over two years. They argued that Musk’s tweets about Dogecoin were “innocuous and often silly” and that there was no evidence linking Musk or Tesla to the suspicious trading activities.

Court’s Decision

On August 29, New York District Federal Judge Alvin Hellerstein dismissed the claims, stating that Musk’s social media statements were “aspirational” rather than “factual and susceptible to being falsified.” He added that “no reasonable investor could rely upon them,” according to the report.

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William Ross
About William Ross 319 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.

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