Elon Musk, Tesla wins Dogecoin fraud case
Elon Musk and his electric automotive company Tesla have denied allegations that they rigged the price of Dogecoin, causing $258 billion in damages.
The suit was handed down on August 29 by US District Judge Alvin Hellerstein in the US District Court for the Southern District of New York.
Judge Hellerstein said the defendants made several “material misrepresentations” about Dogecoin in Musk's tweets, which stated that Musk would be the official CEO of Dogecoin and that Musk could put “live” Dogecoin in a SpaceX vehicle and fly to the moon.
“These claims are wishful thinking, unsubstantiated, and prone to falsification. […] And no reasonable investor can rely on them.
Judge Hellerstein ruled that “no reasonable investor” could rely on Elon Musk's tweets for good investment advice. Source: Pacer
A group of disgruntled Dogecoin (DOGE) investors filed a lawsuit against Musk and Tesla in June 2022, suing Musk for a staggering $258 billion in damages.
Related: Is Dogecoin recording the 2020 fractal that sent DOGE price up 15,800%?
The investors accused Musk of “paying more than 36,000% in two years and then letting it crash.” In addition, Musk “used his position as the world's richest man to run and control the Dogecoin pyramid scheme.”
Musk filed to drop the suit on March 31, after his lawyers described the claims and the $258 billion in damages in Manhattan federal court as “excitingly inventive.”
Dogecoin price remained flat following the news of the layoff, gaining 0.1% in the last 24 hours. At the time of publication, Dogecoin is changing hands at $0.10, and has slipped 20% in the past month, according to CoinGecko data.
Dogecoin has traded up over the past 24 hours but is down 20% on the month. Source: CoinGecko
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