• Elon Musk’s Dogecoin lawsuit has ended as investors withdrew their appeal
• The lawsuit accused Musk of manipulating the price of Dogecoin through fraud and insider trading
• The case was previously dismissed, but investors had sought to continue with legal action against Musk
Elon Musk, the CEO of Tesla and SpaceX, has been closely associated with the meme cryptocurrency Dogecoin for years. His tweets and comments about Doge often led to spikes in the price, leading some investors to accuse him of market manipulation.
The Initial Lawsuit Against Musk
In 2021, a class action lawsuit was filed against Musk claiming he artificially inflated the price of Dogecoin for his own benefit. The plaintiffs pointed to Musk’s appearance on Saturday Night Live in May 2021, after which the price of Dogecoin plummeted. They claimed Musk engaged in a crypto pyramid scheme to profit from the hype he created around Dogecoin.
Musk’s Connection to Dogecoin
There’s no denying Elon Musk has been a vocal supporter of Dogecoin, often referring to himself as the “Dogefather.” His tweets have caused double-digit percentage gains in Dogecoin’s price on multiple occasions. This perceived ability to move the price likely contributed to the lawsuit alleging market manipulation.
The Lawsuit is Dismissed and Appeal Withdrawn
In August 2022, the lawsuit against Musk was dismissed by a Manhattan federal judge who said the investors failed to demonstrate any clear evidence of securities fraud. The investors subsequently filed an appeal but have now withdrawn it, effectively ending the legal saga. Both Musk and Tesla also withdrew a motion to sanction the opposition’s legal team over the case.
What This Means for Musk and Dogecoin
With the lawsuit now definitively over, Musk is free to continue voicing his support for Dogecoin without further legal repercussions. How this will impact the price of the meme coin remains to be seen. But the self-proclaimed “Dogefather” is now clear of any accusations of manipulation, at least for the time being.
