Elon Musk’s lawyers have filed a motion in a Manhattan federal court, seeking the dismissal of a colossal $258 billion lawsuit filed against the Tesla CEO by Dogecoin investors in June 2022. The suit alleges that Musk, once the world’s wealthiest individual, engaged in a racketeering plot to inflate the value of the popular dog-inspired cryptocurrency, Dogecoin.
Musk’s Defense: Tweets Too Vague for Fraud Allegation
In an effort to dismiss the massive $258 billion class-action lawsuit against him, Elon Musk’s legal team argues that the suit brought forth by Dogecoin investors is nothing more than a baseless work of fiction. According to court documents, Musk’s attorneys claim that his vocal support of Dogecoin on social media platforms, including tweets like “no highs, no lows, only Doge” and “Dogecoin Rulz”, are far too ambiguous to substantiate any fraud allegations. The defense asserts that these statements are insufficient grounds for a lawsuit, as they lack the specificity necessary to constitute fraudulent activity.
In their attempt to persuade the court to drop the case, Musk’s attorneys have characterized the Tesla CEO’s tweets as usually silly. They argue that there is no legal wrongdoing in expressing support for or sharing amusing images of a legitimate cryptocurrency, such as Dogecoin, which currently boasts a market capitalization of almost $10 billion. The legal team maintains that Musk’s lighthearted social media presence should not be grounds for a lawsuit, as it does not cross the line into fraudulent or illegal activity.
Elon Musk faces allegations of misrepresenting Dogecoin as a legitimate investment despite its purported lack of intrinsic value. Critics argue that he artificially inflated the coin’s price by an astonishing 36,000% within a two-year period, only to let it plummet afterward. These claims suggest that Musk engaged in market manipulation, contributing to the volatile nature of the cryptocurrency and potentially causing significant financial losses for investors who relied on his endorsements.
Elon Musk’s tweets have historically played a significant role in influencing Dogecoin’s market behavior. The cryptocurrency reached its all-time high when Musk devoted an entire sketch to Dogecoin during his appearance on Saturday Night Live. In the lawsuit, investors highlight Musk’s portrayal of a fictional financial expert on the show, during which he referred to DOGE as a “hustle.” This acknowledgment raises concerns about Musk’s true intentions behind promoting the meme coin and the potential consequences for those who invested based on his endorsements.
Dogecoin’s Potential Utility and Future Prospects
Despite its origin as a Shiba Inu dog-inspired meme, Dogecoin appears to have practical applications. In January 2022, Musk announced that Tesla would accept Dogecoin as payment for the company’s merchandise. Later in May, he revealed that SpaceX would also accept DOGE payments. Furthermore, Musk has previously mentioned collaborating with developers to transform the world’s largest joke coin into a Bitcoin competitor.
As the multi-billion-dollar Dogecoin lawsuit progresses, reports indicate that the plaintiff’s legal team is increasingly confident in the success of their case. This high-profile legal battle will likely continue to draw attention and scrutiny as both sides present their arguments in court.
The memecoin as at the time of writing trades at $0.07918 with a market cap of $10,981,391,910 and is down 5.59% over the past day alone.