Elon Musk has successfully secured the dismissal of a lawsuit accusing him and Tesla of manipulating Dogecoin's price for profit, with the court citing a lack of evidence. The ruling marks a significant victory for Musk and raises questions about the future direction of Dogecoinâs price.
Elon Musk Secures Dismissal in Dogecoin Trading Lawsuit
A U.S. District Judge in Manhattan has dismissed a lawsuit filed against Elon Musk and Tesla, Inc., which alleged that they manipulated Dogecoinâs price for personal gain. The lawsuit claimed that Musk and Tesla engaged in insider trading and used publicity stunts, including social media posts and TV appearances, to artificially inflate the cryptocurrencyâs value by over 36,000% before letting it crash. The plaintiffs argued that Musk profited by selling Dogecoin at its peak after orchestrating the market movements.
However, U.S. District Judge Alvin Hellerstein dismissed the case after investors failed to provide sufficient evidence across five different versions of the lawsuit over a two-year period. Muskâs legal team successfully argued that there was no concrete proof linking Musk or Tesla to the wallets involved in the alleged trading activities or that any wrongdoing occurred in relation to Dogecoin.
Allegations of Insider Trading and Market Manipulation
The lawsuit detailed allegations that Musk manipulated Dogecoinâs market value through various high-profile actions, including his 2021 appearance on NBCâs âSaturday Night Live,â where he jokingly referred to Dogecoin as a âhustle.â The plaintiffs claimed these actions were part of a broader scheme to profit from the cryptocurrencyâs volatility, buying it before public stunts and selling it after prices surged.
One specific incident cited by the plaintiffs was Muskâs decision in April 2023 to temporarily replace the Twitter logo with Dogecoinâs Shiba Inu dog, which led to a 30% increase in the tokenâs price. The plaintiffs alleged that this move allowed Musk to sell the token at an inflated price. However, the judge ruled that there was insufficient evidence to prove that these actions constituted fraud or that Muskâs social media statements were intended to deceive investors.
Muskâs attorneys argued that his tweets and public comments about Dogecoin were more playful than malicious, asserting that his social media behavior, including his love for memes, did not violate securities laws. They also pointed out that the plaintiffs failed to demonstrate a direct link between Muskâs social media activity and specific trading outcomes that would qualify as insider trading.
In the end, the court sided with Musk, finding no direct evidence that he or Tesla profited from suspicious trades or that any misconduct occurred. The ruling effectively ends a legal battle that initially sought $258 billion in damages.
Closure of X Headquarters and Other Developments in Musk's Eventful Week
In a related development, X (formerly Twitter), also owned by Musk, announced the closure of its San Francisco headquarters on September 13, after more than a decade of operation. This event adds to an already eventful week for Musk, who was also involved in a legal dispute with a Brazilian judge issuing a subpoena against him.
DOGE Price Outlook
Following the lawsuit dismissal, Dogecoinâs price saw a recovery, with bulls regaining market control. At the time of writing, DOGE was trading at $0.1006, a 0.45% increase from its support level. According to analyst Trader Tardigrade, Dogecoin may have reached the peak of its bearish momentum, and the price is now exiting a reversal pattern known as the diamond bottom, potentially setting the stage for a bullish breakout.
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