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Musk Requests an End to $258B Dogecoin Lawsuit
HomeNewsMusk Requests an End to $258B Dogecoin Lawsuit

Musk Requests an End to $258B Dogecoin Lawsuit

Daniela Kirova
Daniela Kirova
April 1st, 2023
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  • His lawyers call the lawsuit a “fanciful work of fiction”
  • Musk drove up Dogecoin's price more than 36,000% in two years, then let it crash

Elon Musk and his attorneys requested a US court dismiss the $258 billion lawsuit, alleging Musk operated a Ponzi scheme to promote Dogecoin, Reuters reported.

“Fanciful” fiction

According to the hectobillionaire’s lawyers, the lawsuit against their client is a “fanciful work of fiction.” It was filed by Dogecoin investors in Manhattan's federal court last year. They clarified that the support he demonstrated for the cryptocurrency on social media was “too vague” to qualify as fraud, noting:

There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.

They also described his statements involving Dogecoin as “harmless and often foolish tweets" in an attempt to convince the court to dismiss the lawsuit.

Musk's tweets have prompted several lawsuits. In February this year, he was found not liable for tweeting about having arranged financing for Tesla to go private in August 2018.

He drove DOGE price up more than 36,000% in 2 Years

Musk drove up Dogecoin's price more than 36,000% in two years, then let it crash according to the initial filing. He is accused of using his position as the richest man in the world to run the pyramid scheme.

Was Dogecoin a hustle?

Reportedly, the investors who filed the lawsuit cited his Saturday Night Live (SNL) appearance two years ago, in which he played a fictional financial expert and called the cryptocurrency “a hustle.”

Shortly after the SNL appearance, DOGE lost a quarter of its value, falling from $0.66 when the show started to $0.50.

He tried to make multiple efforts to reignite enthusiasm for Dogecoin after his appearance. When the crypto market crashed, he assured his Twitter followers that he would not sell his crypto, including Dogecoin, Bitcoin, and Ethereum.

Contributors

Daniela Kirova
Writer
Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.