Elon Musk, the CEO of Tesla and a billionaire businessman, is reportedly having legal issues. A lawsuit filed in federal court in Manhattan claims that Musk participated in insider trading and market manipulation of Dogecoin, a well-known meme-coin.
The latest controversy demonstrates a struggle for dominance between the crypto community and an outspoken billionaire.
His online tricks reportedly went too far this time, according to sources. The case claims that Musk manipulated the price of Dogecoin for his strategic advantage by utilizing several platforms, including Twitter and a “Saturday Night Live” appearance.
Investors are also raising questions about Musk’s $124 million strategic sale of Dogecoin. The decision he took happened at the same time that Musk decided to switch Twitter’s logo to the Shiba Inu mascot of Dogecoin, which resulted in a 30% increase in the meme coin’s value.
Musk’s purchase of Twitter the year before just makes the situation more complicated. Musk has been accused of taking advantage of investors by promoting his interests unfairly on social media, according to these allegations.
Investors in Dogecoin stood up in unity, feeling duped and requesting justice. The complaint claims that Musk engaged in a “deliberate course of carnival barking, market manipulation, and insider trading.” They think that these strategies misled them and served as a publicity gimmick for Musk’s businesses and brand.
An important claim made in the case is that Musk allegedly purposefully raised Dogecoin’s price by more than 36,000% in a span of two years before allowing it to fall. Consequently, the investors suffered huge financial losses.
But despite Musk and Tesla’s attempts to have the first case dismissed, U.S. District Judge Alvin Hellerstein has said that the third updated complaint is likely to proceed.
As things progress, they glaringly highlight the serious threats attached to the unpredictability of the cryptocurrency world. Elon Musk is also being closely watched as he begins this legal road by the public and the cryptocurrency community.
The CEO of Twitter has spoken out frequently about Dogecoin and other cryptocurrencies, frequently driving up the price of the token. In 2019, he began tweeting to his tens of millions of followers about DOGE.