Elon Musk, the CEO of Tesla Inc. and the richest man in the world, has found himself at the center of a crypto chaos involving Dogecoin. Musk's vocal support for the meme coin on social media platforms like Twitter has been known to influence its value significantly over the years. However, this support has now led to allegations of insider trading and market manipulation by investors, resulting in a class action lawsuit. Dogecoin, known as the original meme coin, experienced a remarkable surge in value within 72 hours of its launch, largely fueled by Musk's positive tweets. During the crypto bull run in 2021, Musk's endorsements caused Dogecoin's value to skyrocket by over 800%, making it the fifth most valuable cryptocurrency with a market cap exceeding $80 billion. The 2022 crypto winter brought a devastating crash to Dogecoin, and disgruntled investors filed a class action lawsuit against Musk. The suit accuses him of engaging in insider trading and manipulating the cryptocurrency to his advantage, resulting in substantial financial losses for investors. According to the court filing in Manhattan federal court, investors claim that Musk used various tactics, including tweets, payments to online influencers, and a high-profile appearance on "Saturday Night Live," to manipulate Dogecoin for his personal gain. The alleged transactions were conducted through multiple Dogecoin wallets controlled either by Musk personally or by Tesla. One specific incident mentioned in the filing involves Musk's sale of approximately $124 million worth of Dogecoin in April. This sale came after Musk replaced Twitter's blue bird logo with Dogecoin's Shiba Inu dog logo, causing a 30% surge in the coin's value. Investors argue that Musk intentionally inflated Dogecoin's price by an astounding 36,000% over two years, only to let it crash later. The ongoing lawsuit, which began in June of the previous year, includes these new allegations as part of a proposed third amended complaint. The battle between the Dogecoin investors and Musk's legal team has intensified. The plaintiffs have urged the judge to dismiss Musk's attorneys, accusing them of displaying "derogatory and oppressive misconduct" throughout the case. They believe that impartial attorneys should handle the trials and defense, rather than individuals who may align their interests with Musk's personal agenda. In response, Musk has firmly denied the allegations and attempted to have the lawsuit dismissed. He and Tesla's legal team have dismissed previous amended complaints as baseless and have argued against further amendments. As the legal drama continues, the controversy surrounding Elon Musk's involvement with Dogecoin highlights the power that influential figures can wield in the world of cryptocurrencies. Investors seek accountability, while Musk maintains his innocence, making this an ongoing saga that continues to capture attention in the crypto community and beyond.
