- Musk was accused of using Twitter and SNL for Dogecoin price manipulation in a lawsuit filed against him
- The lawsuit alleged that Musk profited from trading Dogecoin through wallets controlled by him or Tesla, at the expense of investors.
Billionaire Elon Musk was facing fresh accusations as Dogecoin [DOGE] investors filed a class action lawsuit accusing Musk of insider trading.
According to reports, billionaire entrepreneur and Tesla’s CEO, Elon Musk, was entangled in legal difficulties. A suit lodged in Manhattan’s federal court alleged that Musk engaged in market manipulation and insider trading of DOGE.
Elon’s using Twitter to propagate price manipulation
The complaint alleged Musk exploited various platforms, including Twitter and a “Saturday Night Live” appearance, to manipulate the price of DOGE for his strategic gain. Musk’s acquisition of Twitter further complicated allegations. This led to accusations that Musk used the social media platform to further his interests in unfair ways toward investors.
The lawsuit noted that Mr. Musk engaged in a “deliberate course of carnival barking, market manipulation, and insider trading” which enabled him to defraud investors and promote himself and his companies. The filing noted,
“This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk.”
Furthermore, the lawsuit also stated that Musk deliberately inflated DOGE’s price by over 36,000% within two years before allowing it to crash. As a result, causing considerable financial losses for the investors.
To strengthen their claims, investors drew attention to Musk’s strategic divestment of Dogecoin, totaling around $124 million. This action occurred around the same time as Musk’s decision to replace Twitter’s logo with Dogecoin’s Shiba Inu mascot, which caused the memecoin’s value to spike by 30%.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
Oh my DOGE!
At the time of this writing, Elon had not responded to these allegations. However, Elon Musk offered a word of warning about DOGE a week before the latest allegations.
“I’m not advising anyone to buy crypto or bet the farm on dogecoin,” the Tesla CEO said at a conference in London hosted by the Wall Street Journal.
At press time, DOGE was exchanging hands at $0.07224. Despite the hush-hush around DOGE, the memecoin still traded in the green and was up by 0.20% in the last 24 hours. Additionally, it was trading 1.88% higher in the last seven days. Thus, it was clear that DOGE stayed true to its route despite the lawsuit.
