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Musk Slapped with $258 Billion Lawsuit Over Alleged Fraud

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  • Musk requested the judge to drop the $258 billion lawsuit.
  • Dogecoin investors accuse the second-richest man of defrauding people.
  • The Tesla CEO allegedly used Doge for a pump and dump scheme.

The Tesla CEO was accused of running a ‘pump-and-dump’ to spike the price of Dogecoin. Musk requested the judge to drop the $258 billion lawsuit 

Dogecoin, one of the most popular meme-cryptocurrencies other than Shiba Inu is Musk’s favorite coin. Doge 

Calling the lawsuit a “fanciful work of fiction,” lawyers for Musk’s EV company, Tesla, said that “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.”

This court should put a stop to plaintiffs’ fantasy and dismiss the complaint,” the lawyers added.

The investors claimed that Dogecoin qualified as a security, which the lawyers dismissed in a footnote. Evan Spencer, the lawyer representing the investors, said in an email-statement – “We are more confident than ever that our case will be successful.”

As reported by Forbes, Musk was accused of jacking up the price of Dogecoin by nearly 36,000% over two years and letting if fall rapidly. The plaintiffs referred to Musk’s appearance on NBC’s Saturday Night Live show “Weekend Update” where he played a fictitious financial expert calling Dogecoin “a hustle.”

As per Reuters, “the case is Johnson et al v. Musk et al, U.S. District Court, Southern District of New York, No. 22-05037.”

Musk has faced several lawsuits over his tweets. Last month, a San Francisco jury found him not liable for a tweet saying that he had arranged for funds to privatize Tesla, per Reuters.

Amid news of Musk’s request for dismissal of the charge, Doge price surged. Doge went up 4% intraday. Also, a whale abruptly moved 350 million of Doge coins, according to Whale Alert, a whale monitoring platform. At the time of the whale movement, the transaction amounted to $26 million.

Musk’s tweets gather views in hundreds of thousands and market reactions are almost always evident. Last year the second-richest man acquired the micro-blogging platform for a whoping $44 billion after dilly dallying on the deal. Also, Musk “appointed” his dog as the CEO of the social media website.

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