Elon Musk Sued for Insider Trading Over Dogecoin Profits
• Elon Musk is being sued by a group of Dogecoin investors for allegedly engaging in insider trading and manipulating the cryptocurrency.
• The lawsuit claims that Musk’s Twitter posts, media appearances, and other publicity stunts led to increased Dogecoin prices when he sold off approximately $124 million worth of the crypto in April.
• Investors are accusing Musk of intentionally inflating Dogecoin’s value by over 36,000% over a two-year period before letting its price plummet.
Elon Musk Facing Lawsuit from Dogecoin Investors
A group of Dogecoin investors have filed a class action lawsuit against billionaire entrepreneur Elon Musk, CEO of SpaceX and Tesla, alleging him of insider trading and market manipulation.
Details of the Complaint
The plaintiffs alleged that through his tweets, compensated online influencers, his 2021 appearance on NBC’s “Saturday Night Live”, and other publicity maneuvers, Musk was able to trade Dogecoin profitably through several wallets controlled by him or Tesla at their expense. It is also claimed that these events caused a significant increase in the cryptocurrencys value when he sold $124 million in April 2021.
Musk’s attorney Alex Spiro chose not to comment on the matter while representatives for both Tesla and the attorney representing the investors did not immediately respond to requests for comments.
Accusations Against Musk
Investors are accusing Musk of intentionally inflating Dogecoin’s value by over 36,000% over a two-year period only to let it plummet thereafter. The lawsuit further alleges that he engaged in a “calculated strategy of hype, market manipulation, and insider trading,“ allowing him to deceive investors while promoting himself and his companies.
The goal of this class action lawsuit is seeking justice for all those who have suffered losses due to Musks alleged actions as they claim it has resulted in millions or even billions of dollars worth losses for them.