Elon Musk’s legal battle concerning allegations of manipulating Dogecoin has come to a close as investor have withdrawn their appeal. The case, which sought $258 billion in damages, was dismissed in August 2024, with U.S. District Judge Alvin Hellerstein ruling that Musk’s tweet and public statements were too vague to constitute securities fraud.
Investors alleged that Musk’s actions, including his appearance on “Saturday Night Live,” were timed to benefit his financial interests at their expense.
???? BREAKING: Lawsuit accusing Elon Musk of rigging $DOGE ends as investors drop their appeal and legal motions. pic.twitter.com/zpMa2foJQ5
— Cointelegraph (@Cointelegraph) November 15, 2024
Allegation Against Elon Musk
The investors’ legal strategy in the Dogecoin lawsuit against Elon Musk evolved from initial allegation of market manipulation and securities fraud to more specific claims of insider trading and deliberate price manipulation. Initially, they focused on Musk’s public statements, particularly his “Saturday Night Live” appearance, which they argued led to significant financial losses.
As the case progressed, they expanded their claims to include evidence that Musk’s social media activity directly influenced Dogecoin’s market fluctuations, asserting that he used his status to artificially inflate price for personal gain. This shift aimed to strengthen their case and substantiate their demand for substantial damages.
Withdrawal of Appeals
On November 15, 2024, both parties filed a stipulation to drop their respective appeals and legal motions in federal court, effectively ending the dispute. This decision follows the judge’s earlier dismissal of the investors’ claims and their attempts to sanction Musk’s legal team for alleged interference during the appeal process.
Musk’s legal representative argued that the lawsuit was based on inconsistent theories and aimed at extorting quick payout. The conclusion of this litigation coincides with Musk’s new role as co-chair of the Department of Government Efficiency (DOGE), an initiative launched by President-elect Donald Trump.
This outcome highlights the complexities surrounding cryptocurrency regulation and the challenges investors face when alleging fraud in volatile markets like Dogecoin.
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