Elon Musk receives a new class action lawsuit accusing him of using his position of power and inside information to manipulate the price of Dogecoin. His lawyers consider the arguments “works of fiction.”
Elon Musk, controversial CEO of Tesla and Twitter, is in the midst of a class action lawsuit accused of manipulating the price of the popular cryptocurrency Dogecoin. Investors say Musk used his social media influence, as well as his appearances on television and paying internet influencers, to profit at the expense of other investors.
Elon Musk has talked extensively about Dogecoin in recent years, leading to significant increases in its price. From declaring it his favorite currency to mentioning it in his appearance on Saturday Night Live, to even considering accepting it as a form of payment for Tesla vehicles.
According to the lawsuit published by Reuters, the investors consider the hype beyond words and argue that Elon Musk used his enormous influence to artificially increase the price of Dogecoin and then profit from it.
According to the document filed in federal court in Manhattan, it is alleged that sold Dogecoin worth approximately $124 million, after changing the Twitter logo to that of Dogecoin, which led to a 30% increase in the price of the cryptocurrency.
Musk would have carried out a series of actions aimed at manipulate the market and use inside information to mislead investors and would have intentionally increased the price of Dogecoin by more than 36,000% over several years and then allowed it to crash.
It is not the first lawsuit because of Dogecoin
This is not the first time that Elon Musk has faced a Dogecoin-related lawsuit. In total, he has been sued for $258 million in damages.. Musk’s lawyers have called the allegations “works of fiction” and have so far not commented on this new amendment.
Dogecoin, a cryptocurrency that started as a joke in 2013has gained a following over the years and is currently ranked ninth in terms of market capitalization, with over $10 billion, according to CoinGecko.
The case against Elon Musk for allegedly abusing his position to enrich himself with Dogecoin will continue and it will be interesting to see how this class action lawsuit plays out and what consequences it could have for one of the most influential entrepreneurs in the world of technology and cryptocurrencies.
