Elon Musk and his company Tesla have emerged victorious in a significant legal dispute after a federal judge in Manhattan dismissed a lawsuit accusing them of manipulating the price of Dogecoin.
The lawsuit, filed in June 2023, alleged that Musk and Tesla leveraged social media and other publicity channels to inflate Dogecoin’s value by more than 36,000%. The plaintiffs claimed that Musk subsequently sold off the cryptocurrency at its peak, causing a sharp decline in its value and resulting in substantial losses for investors. They sought $258 billion in damages, arguing that Musk’s actions constituted insider trading and market manipulation.
According to Reuters, Judge Hellerstein’s ruling rejected these allegations, concluding that Musk’s public statements about Dogecoin—ranging from endorsements of its potential as a future currency to lighthearted references—were not fraudulent. The court found no evidence that Musk or Tesla engaged in market manipulation or unfair trading practices.
The case has been dismissed with prejudice, preventing any possibility of it being refiled. This ruling represents a major legal triumph for Musk and Tesla, allowing them to put this matter behind them.
Musk’s legal team celebrated the outcome, asserting that Musk’s statements about Dogecoin were intended to be aspirational rather than misleading. They emphasized that there was no evidence connecting Musk or Tesla to the alleged manipulative trades.
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