Elon Musk and his company Tesla faced a lawsuit for allegations of Dogecoin market manipulation.
The token has not shown any significant price movements in the past day.
The cryptocurrency sector confronts several legal complications on a daily basis. While regulatory bodies often stand central to such occurrences, there are instances when individual traders raise issues. One such lawsuit was the 2022 Dogecoin Manipulation case filed against tech billionaire Elon Musk and his company Tesla.
According to market reports, a US Federal Court approved Elon Musk’s dismissal request for the lawsuit on Thursday. Relatedly, in the last 24 hours, another crypto-legal report was Muderx getting a court order to shut down scam websites.
The Southern District Court of New York’s Judge Hellerstein granted the defendant’s appeal, declining the claims of the group of investors who filed the lawsuit. Moreover, the plaintiffs accused Musk of manipulating the price of Dogecoin and being involved in Insider trading.
They stated that Musk’s promoting the cryptocurrency on his Twitter account, and the changing of Twitter bird logo to DOGE was timed with Tesla and the billionaire’s trading as token prices went up. Additionally, the investors also indicated that the memecoin crash might have been caused by Elon Musk and his automobile firm.
Previously, Elon Musk once made a comment that he would become the ‘CEO of DOGE’ and that he would take an actual Dogecoin in his SpaceX vehicles. The investors quoted these instances and demanded $258 billion in damages.
How was the Elon Musk & Tesla Lawsuit Dismissed?
The New York court Judge stated that the comments were not meant to be factual and thus cannot be viewed as reliable investment-related statements. The Judge stated that the allegations of a ‘pump and dump scheme’ on the billionaire seemed ‘not possible to understand’. Thus saying the prosecutor denied allegations of market manipulation.
Judge Hellerstein stated in the Court Order:
“These statements are aspirational and puffery, not factual and susceptible to being falsified. …and no reasonable investor could rely upon them.”
Meanwhile, market analysts expected Dogecoin’s price to rally following the court decision. On the other hand, contrary to predictions DOGE showed no significant price movements. At the time of writing, DOGE was trading at $0.09998 as per CMC data.
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