In the field of digital currency, every fluctuation affects the nerves of global investors, and Elon Musk, a legendary figure in the technology industry, continues to stir up waves in the cryptocurrency market with his unique words and deeds. Recently, a legal dispute between Musk and Dogecoin ended with Musk's victory, which attracted widespread attention and discussion.
Dogecoin, a cryptocurrency that was originally created as a joke, quickly became popular under Musk's promotion. Musk frequently mentioned Dogecoin on social media and even regarded it as a "people's currency", which greatly increased the popularity and value of Dogecoin. However, it was this frequent interaction that also led Musk to be accused of market manipulation.
Musk, the godfather of Dogecoin and CEO of Tesla, was sued in court in 2022 and was accused of frequently posting articles to promote Dogecoin, causing the price of Dogecoin to fluctuate greatly. A group of dissatisfied Dogecoin investors filed a lawsuit against Musk and Tesla in June 2022, accusing them of deliberately raising the price of Dogecoin for insider trading, attracting retail investors to enter the market and then dumping large quantities of Dogecoin to cause the price of the currency to plummet.
The lawsuit was amended four times in two years. Investors accused Musk of pushing up the price of Dogecoin by more than 36,000% in two years and then causing it to collapse. They also accused Musk of using his position as the world's richest man to operate and manipulate the Dogecoin pyramid scam and demanded $258 billion in compensation.
However, the plaintiff's allegations and claims have not been able to support their position, because the wallet involved in the sale of Dogecoin has no actual connection with Musk or Tesla. The lawsuit also failed to prove whether Musk's remarks about Dogecoin were false or misleading.
Musk filed legal documents with the court in March 2023, asking the judge to dismiss the lawsuit. His lawyers argued that the class action lawsuit by Dogecoin investors was a fantasy fiction about Musk's "harmless tweets" about Dogecoin.
Now the case has finally come to a final conclusion. Alvin Hellerstein, a judge at the U.S. District Court for the Southern District of New York, dismissed the lawsuit against Musk and Tesla on the 29th, and he dismissed the lawsuit with a no-response ban, which means that the plaintiff will not be able to file a lawsuit again.
Alvin Hellerstein said that Musk's tweets that Dogecoin is the future currency of the earth, can be used to buy Teslas, and will be sent to the moon by SpaceX are ambitious exaggerations that are not true and can be easily falsified. No rational investor would regard those tweets as trustworthy investment advice. Therefore, no investor can rely on these tweets to file securities fraud claims.
When Musk's lawyers sought to dismiss the lawsuit last year, they emphasized that there was no evidence that Musk had a wallet to conduct suspicious transactions, or that Musk and Tesla had sold Dogecoin. After the lawsuit was finally dismissed, Musk's lawyers said: This is a very good day for Dogecoin.
However, Musk's past actions and remarks have indeed caused Dogecoin to rise and fall sharply, and he particularly likes to attack Dogecoin. In September last year, Musk's personal autobiography "Musk Biography" revealed that he has actually been secretly funding the development of Dogecoin and even intends to build a payment system focused on DOGE tokens. Earlier this year, Musk revealed his strong support for Dogecoin in a speech and is expected to include DOGE as one of the payment methods for purchasing Tesla electric vehicles.
Until recently, the Republican presidential candidate and former President Donald Trump said that if he was re-elected as the US President, he would appoint Musk to a cabinet position or invite him to serve as a government advisor. In response, Musk responded humorously on the social platform: I am willing to serve. At the same time, he posted a meme and played a pun, joking that he would work in the "Department of Government Efficiency". The department abbreviation "D.O.G.E." is the same as the trading code "DOGE" of Dogecoin. At the same time as Musk posted the article, the price of Dogecoin reacted again, rising by about 1.6%.
All in all, Musk's victory in the Dogecoin manipulation case is positive news for him and Dogecoin investors. Musk has played a positive role in the development of Dogecoin. However, the future development of Dogecoin is still full of uncertainty, and the story between Musk and Dogecoin has not yet come to an end.
