Dogecoin

Elon Musk

A federal court in Manhattan has dismissed a lawsuit accusing Elon Musk and Tesla Incorporated of defrauding investors over the cryptocurrency Dogecoin, per a Aug. 29&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/legal/elon-musk-tesla-win-dismissal-lawsuit-claiming-they-rigged-dogecoin-2024-08-29/">Reuters report</a>.
The lawsuit, filed in June 2023,&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/legal/elon-musk-is-accused-insider-trading-by-investors-dogecoin-lawsuit-2023-06-01/">claimed</a> that Musk and Tesla manipulated the Dogecoin market, inflating its value by over 36,000%. In their lawsuit, the plaintiffs argued that Musk's social media promotion of Dogecoin and his endorsement of it for Tesla merchandise caused the cryptocurrency's price to spike dramatically.&nbsp;
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They accused Musk of leveraging his influence to drive up the cryptocurrency's value and then profiting from its decline.
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The complaint alleged that Musk’s public statements, including a notable tweet saying "One word: Doge," and the announcement that Tesla would accept Dogecoin for merchandise, were designed to manipulate the market.&nbsp;
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The investors sought&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/legal/transactional/elon-musk-sued-258-billion-over-alleged-dogecoin-pyramid-scheme-2022-06-16/">$258 billion</a> in damages, alleging insider trading and market manipulation.
<h2 dir="ltr" id="span-span-court-s-ruling-span-span">Court’s Ruling</h2>
Judge Hellerstein’s ruling decisively rejected the plaintiffs' claims. The court determined that Musk’s comments about Dogecoin were not fraudulent but were rather aspirational and puffery.&nbsp;
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According to the ruling, statements about Dogecoin being the "future currency of Earth" or being used to buy Teslas were deemed as promotional rather than actionable fraud.
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The judge noted that there was no substantial evidence to support claims that Musk or Tesla were involved in unfairly manipulating the market or trading Dogecoin to their advantage.&nbsp;
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Elon Musk and Tesla have welcomed the court’s decision, viewing it as a validation of their actions. Musk has previously stated that his comments about Dogecoin were humorous and did not intend to mislead investors.
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Dogecoin DOGE is&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/dogecoin/">trading at $0.1009</a> with almost no change over the last 24 hours at the time of writing.

Elon Musk and Tesla Win Legal Battle as Dogecoin Lawsuit is Thrown Out

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