Elon Musk is being sued for manipulating the price of Dogecoin cryptocurrency
Billionaire abused his popularity and public trust in his person, according to the lawsuit
A group of investors has filed a lawsuit in Manhattan Federal Court accusing Elon Musk of insider trading in the Dogecoin cryptocurrency.
Source. The Guardian writes about it.
According to the plaintiffs, the billionaire abused his popularity and public trust in his person to manipulate the price of the digital asset.
The lawsuit states that he provoked the artificial growth of the Dogecoin cryptocurrency with his Twitter posts, paid blogger advertising campaigns, his own appearance on NBC, and some other publicity stunts.
In this way, the businessman allegedly secured the opportunity for profitable trading through several Dogecoin wallets owned by him and his company Tesla.
Just changing the Twitter logo to the Dogecoin logo with a Shiba Inu dog helped Musk sell the cryptocurrency for another $124 million, causing its price to jump by 30%.
Investors characterized all these actions as "market manipulation and insider trading."
This is the third version of the lawsuit in the trial, which began in June last year. The businessman is accused of deliberately raising the price of Dogecoin by more than 36,000% over two years and allowing the cryptocurrency to fall.
In the ruling issued the day before, District Judge Alvin Hellerstein said that he would "probably" accept the lawsuit in its third version.
Background. As a reminder, Elon Musk's Starlink has won a Pentagon contract to provide satellite services to Ukraine.
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