Elon Musk Requests Judge to Dismiss $258B Dogecoin Lawsuit
- The lawyers representing Elon Musk have asked a judge to dismiss the $258 billion lawsuit filed by investors in Dogecoin (DOGE) against the Tesla CEO.
- The lawyers said that the lawsuit was a “fanciful work of fiction” in Manhattan’s federal court on March 31.
- They said that Twitter posts such as “Dogecoin Rulz” and “no highs, no lows, only Doge” were “too vague” to be considered in a fraud case.
- In order to convince the judge to “throw out” the lawsuit, Elon Musk’s lawyers called his statements “innocuous and often silly tweets.”
Elon Musk, the CEO and founder of Tesla and SpaceX, promoted Dogecoin (DOGE), the world’s largest meme coin by market capitalization, which he repeated in the bull run of the 2020–2021 crypto market and went as far as to accept payments in the token as well. With an all-time high of $0.7, the meme coin made many investors millions, but following the onset of the 2022 bearish run of the crypto market, significant losses piled up on holders.
As a result, Elon Musk has asked a judge to dismiss the lawsuit filed against the Tesla executive, which claims that he operated a pyramid scheme to promote Dogecoin, which is almost 90% down from its all-time high. A report from Reuters on April 1 confirmed that the lawyers representing the new owner of social media platform Twitter claimed that the lawsuit was a “fanciful work of fiction” in Manhattan’s federal court on March 31.
The lawyers claim that statements posted on Twitter by Elon Musk like “Dogecoin Rulz” and “no highs, no lows, only Doge” were “too vague” to be considered grounds for a fraud case.
“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.”
In order to convince the judge to “throw out” the lawsuit, Elon Musk’s lawyers called his statements “innocuous and often silly tweets.” It is important to mention here that the lawsuit, worth $258 billion, claims that the Tesla executive “used his pedestal as the world’s richest man to operate and manipulate the Dogecoin pyramid scheme.” The lawsuit accused the SpaceX CEO of pushing Dogecoin’s price by “more than 36,000% over two years and then letting it crash.”
The lawsuit also emphasized the presence of Elon Musk on Saturday Night Live as “a fictitious financial expert” and his emphasis on the Dogecoin token. He called Dogecoin “a hustle” as a reference point in the lawsuit.
Interestingly, Elon Musk has not given up on his cryptocurrency and continues his attempts to promote the meme token. Recently, the businessman revealed that he is working with “Doge developers to improve system efficiency” and that it could be “potentially promising.” He also told his followers that Tesla holds Ethereum, Bitcoin, and Dogecoin while adding that he would not sell his personal stash of crypto coins in the bear market either.
As reported earlier by Bitnation, Elon Musk is interested in taking over the collapsed banking institution Silicon Valley Bank (SVB) and will attempt to digitize it if he successfully purchases it. Also, people with knowledge of the matter said that he would turn Twitter into a “super app” with the integration of a payments system that will initially support only fiat currencies but go on to support crypto coins as well.
It is crucial to note that Twitter was working on a crypto wallet in 2022, but the idea was dropped after more than 70% of the workforce was let go.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
