Elon Musk Sued For Inflating Dogecoin Price

A group of investors accused Elon Musk of using his influence on Twitter to cause fluctuations in the price of Dogecoin, causing them to lose billions of dollars.

In a lawsuit filed in Manhattan federal court this week, the investor group said Musk has posted multiple posts on Twitter, paid influencers, participated in NBC's Saturday Night Live TV show , and such as performing other "public dangers" to influence the price of the Dogecoin coin meme to make a profit.

The team claims that Musk intentionally inflated the price of the meme coin by 36,000% in two years, then let it free-fall. For example, in April, Musk replaced Twitter's blue bird logo with a Shiba Inu dog, causing Dogecoin to increase 30%, then sold it and raised $ 124 million. "It's a process of creating attention, manipulating the market, helping Musk defraud investors, and promote himself and his companies," the lawsuit states.

Elon Musk and his attorney, Alex Spiro, were not immediately available for comment. He just finished his visit to China on May 31.

Dogecoin price fluctuations in April, when Musk replaced Twitter's blue bird icon with a Shiba Inu dog. Photo: Bao Lam

In June 2022, investor Keith Johnson also filed a lawsuit in Manhattan court, accusing Musk and his two companies, SpaceX and Tesla, of creating a multi-level model to trick many people into investing in Dogecoin. Johnson claims $258 billion in damages . In March of this year, Musk's legal team filed a lawsuit, saying that tweets like "Dogecoin Rulz" or "Long live Doge" by the Twitter CEO were innocuous, unable to affect the market.

"There is nothing illegal about posting support on Twitter or sharing some funny photos of a cryptocurrency with a market capitalization of nearly $10 billion. The court should end the plaintiff's imagination and dismiss the claim. complaint," Musk's attorney wrote.

Dogecoin is a cryptocurrency created as a joke by Billy Markus and Jackson Palmer to critique the 2013 Bitcoin craze. It was inspired by the Doge meme, a Shiba dog with a bewildered face. This coin is based on Litecoin, has a fast mining speed compared to other cryptocurrencies and is not limited like Bitcoin.

In the history of Dogecoin development, Musk is one of the indispensable factors because he has publicly supported this coin many times. After each of his tweets, Dogecoin always increases from tens to hundreds of times.

Bao Lam (according to NYPost )

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