DOGE

Victory for Elon Musk and Tesla in Dogecoin Manipulation Legal Challenge

Elon Musk, alongside his company Tesla, successfully secured the dismissal of a legal claim alleging they had manipulated Dogecoin’s market value, purportedly causing $258 billion in losses.

The decision to dismiss the case was handed down on August 29 by Judge Alvin Hellerstein of the U.S. District Court for the Southern District of New York.

Judge Hellerstein addressed the claim that Musk’s tweets about Dogecoin were deceptive, citing examples where Musk joked about becoming Dogecoin’s CEO and his tweet about sending a Dogecoin to the moon aboard a SpaceX rocket. Hellerstein clarified that these remarks were meant to be whimsical and promotional rather than taken as serious investment advice, emphasizing that “no reasonable investor should base their investment strategies on these statements.”

In 2022, a collective of displeased Dogecoin holders initiated a lawsuit against Musk and Tesla, demanding $258 billion in compensation. They argued that Musk had inflated Dogecoin’s value tremendously, only to allow it to plummet, and accused him of leveraging his status to foster a “Dogecoin Pyramid Scheme.”

Musk’s legal team asked for the case to be dismissed earlier in March, labeling the damage claims and allegations as overly imaginative and not grounded in reality.

Following the announcement of the case’s dismissal, Dogecoin’s value saw minimal movement, with a slight increase of 0.1% in 24 hours. As per the latest figures from CoinGecko, Dogecoin was trading at $0.10, having declined by 20% over the past month.