Twitter CEO Elon Musk Accused of Insider Trading by DOGE Investors

Dogecoin (DOGE) investors have come up with an amended complaint against electric automobile boss Elon Musk.

According to the amended class action, Musk allegedly manipulated the price of the memecoin to make a profit. Specifically, the investors insisted that the soon-to-be former Chief Executive Officer (CEO) of Twitter leveraged his huge followership on the blue-bird app and other media appearances to rake in billions of dollars in profit through DOGE trades.

According to the amended lawsuit which was filed in the United States District Court for the Southern District of New York, “This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading.”

Musk Promote Dogecoin on Social Media

Dogefather as he is popularly referred to made several moves to promote the memecoin on social media. 

These investors are now saying that all the profit he amassed was at their expense. One such move by Musk which caused the price of DOGE to spike was when he replaced Twitter’s blue bird logo with the dog head logo of DOGE. By the time he switched back to the original Twitter logo in April, the price of Dogecoin dropped significantly.

About a year ago, before he finally acquired Twitter, Musk had also tried to pitch DOGE as a payment option for Twitter Blue subscribers. This was in addition to reducing the subscription fee to approximately $2 from $3 which is meant to be billed annually. The fee is currently fixed at $8 after several objections.

Dogecoin Investors Say Elon Musk Violated Securities Law

Dogecoin investors first filed this lawsuit against Musk last year, just before he became Twitter CEO. However, his actions have caused them to modify and amend the class-action lawsuit a couple of times. 

Again, they requested leave from the court to amend the lawsuit, this time around stating that he was involved in a case of insider trading and that DOGE is securities under the classification of the Securities and Exchange Commission (SEC) Chair Gary Gensler.

Musk Attorneys Ask Court to Dismiss Lawsuit

On the other hand, Musk and his legal representation team have asked the court to throw out the $258 billion lawsuit accusing him of running a pyramid scheme for DOGE.

Per a statement by his lawyers, “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.”