In a stunning turn of events, tech visionary and Tesla CEO Elon Musk is embroiled in a high-profile legal battle, as memecoin investors level explosive accusations of insider trading involving Dogecoin (DOGE). This latest lawsuit is a follow-up to a staggering $258 billion class action suit filed in June 2022, alleging that Musk and his enterprises inflicted colossal losses upon Dogecoin holders.
Dubbed the "Elon Musk Dogecoin Agenda," the amended filing submitted on May 31 in a Manhattan federal court presents a damning case, asserting that Musk orchestrated a calculated campaign of carnival-like market manipulation, deploying an elaborate "publicity circus" to drive up Dogecoin's value.
Musk's strategic public appearances and relentless social media engagements are central to these claims, dating back to April 2019, when he masterfully hyped up Dogecoin. These carefully choreographed stunts resulted in a mind-boggling surge of 36,000% in Dogecoin's price, soaring to a peak of $0.70+ by May 2021. Presently, DOGE trades at a staggering 90% below that historic high.
The court filing dismisses Musk's contention that his promotion of Dogecoin was merely lighthearted fun, characterizing him as an "apex predator" while labeling his millions of Twitter followers as unwitting prey.
Remarkably, numerous studies have already established the profound impact of Musk's tweets on Dogecoin's price movements. Notably, his announcements of accepting Dogecoin at SpaceX in 2021 and his takeover of Twitter, marked by his visit to the company's headquarters last year, have all been catalysts for DOGE's volatile price shifts.
Musk further exerted his influence by temporarily changing Twitter's iconic blue bird logo to the Doge meme's Shiba Inu, causing an immediate 30% price surge for the coin.
The lawsuit highlights blockchain records indicating Musk and Tesla's profitable trades coincided with the billionaire's strategic maneuvers to bolster their case. Specifically, it cites a tracked wallet address, "DH5ya," purportedly associated with Musk, which became the largest single holder of Dogecoin by February 2021. Throughout April 2021, this wallet allegedly sold millions of dollars worth of Dogecoin on multiple occasions.
The lawsuit's crux revolves around the claim that Dogecoin qualifies as an unregistered security, as per the established standards of the U.S. Securities and Exchange Commission. Despite the fact that Billy Markus and Jackson Palmer were the ones who initially created Dogecoin in 2013, neither has been actively involved in the project for many years. Interestingly, Markus and Musk engage in lighthearted banter on Twitter, often exchanging humorous commentary about cryptocurrencies.
When the original lawsuit was filed, Musk's legal team dismissed it as baseless, arguing that expressing support or sharing amusing content about a legitimate cryptocurrency with a market cap nearing $10 billion is entirely lawful.
This latest development has sent shockwaves through the cryptocurrency community, leaving observers eagerly awaiting the legal showdown between Musk and the aggrieved Dogecoin investors.
Please note that the above rewrite summarizes the original article and does not reflect any verified facts or outcomes.
