Musk wins DOGE trading lawsuit, will the price rebound?
Musk successfully won the dismissal of a federal lawsuit accusing him and Tesla of defrauding investors by promoting and trading the Doge cryptocurrency.
According to Reuters, Musk and Tesla won the dismissal of a lawsuit in Manhattan federal court that accused them of manipulating the price of Doge for personal gain. Investors claimed that Musk and Tesla caused the price of Doge to soar by more than 36,000% through insider trading and publicity including social media posts and TV appearances, and then allowed it to collapse. The plaintiffs also pointed out that Musk sold the cryptocurrency at the high point of the price after carefully planning market fluctuations, making a profit.
U.S. District Judge Hellerstein dismissed the case for insufficient evidence after investors filed five different versions of the lawsuit over two years. Musk's legal team argued that there was no conclusive evidence that Musk or Tesla owned the wallets involved in the alleged trading activities, nor any evidence of any wrongdoing related to Doge.
The lawsuit details how Musk manipulated market value through high-profile actions, including calling Doge a scam on NBC's Saturday Night Live in 2021, even though he played a fictional financial expert on the show. The plaintiffs claim that these actions were part of Musk's broader plan to profit from price fluctuations by buying cryptocurrencies before public stunts and selling them after prices rose.
Musk's lawyers argued that his tweets and public statements about cryptocurrencies were "harmless and often stupid" rather than an elaborate pyramid scheme or market manipulation. They insisted that Musk's social media behavior, including his love of online memes, did not violate securities laws.
One analyst noted that Doge has passed the worst of the bear market and suggested that its price is breaking out of a diamond bottom reversal pattern in preparation for a bullish breakout.
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