As reported in a Reuters article from April 1, Elon Musk and his attorneys allegedly asked a US judge to throw out the $258 billion lawsuit brought by investors who claimed that he ran a pyramid scheme to market the cryptocurrency Dogecoin.
In a federal court in Manhattan on March 31, Elon Musk’s attorneys described the case brought by Dogecoin investors as a “fanciful work of fiction.” Also, they said that Musk’s remarks on Dogecoin, such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” were “too vague” to establish a fraud case.
The attorneys stated:
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”
Elon Musk and His Love for Dogecoin
A number of investors sued Musk for raising the value of Dogecoin by “more than 36,000% over two years and then letting it crash,” when they first filed their complaint against him in June 2022.
They also accused Musk’s businesses SpaceX and Tesla Inc. of being involved in the case. Investors used Musk’s May 2021 performance on Saturday Night Live (SNL), in which he played “a fictitious financial expert” and referred Dogecoin as “a hustle,” like a comparison point in their complaint.
The price of DOGE crashed more than 25% within minutes of his appearance on Saturday Night Live, dropping as low as $.50 from $.66 highs at the beginning of the broadcast.
The South African-born entrepreneur is known to be a fervent advocate of Dogecoin. He had admitted investing some of his personal funds in it over the past few years and regularly praised the token’s features. Note that the token’s value surged as a result of its interactions with The Boring Company, which Elon Musk founded.
In August of last year, the millionaire also asserted that Dogecoin can execute more transactions per second than Bitcoin.
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