Dogecoin Drama: Elon Musk Requests Dismissal of $258B Lawsuit

Tesla and Twitter CEO Elon Musk has asked a U.S. judge to dismiss a $258 billion lawsuit filed against him by dogecoin investors.
Musk’s legal team described the lawsuit as a fanciful work of fiction over Musk’s “Innocuous and often silly tweets” about Dogecoin.

Elon Musk, the billionaire entrepreneur, Tesla, and SpaceX CEO is asking a judge to dismiss the billion-dollar lawsuit filed against him back in June 2022 for allegedly running a Dogecoin (DOGE) pyramid scheme.

According to Reuters, the Twitter CEO’s attorneys have filed a motion to dismiss the $258 billion lawsuit filed by Johnson et al v. Musk et al in the US District Court for the Southern District of New York. According to the investor lawsuit, Musk purposefully drove the price of DOGE up by 36,000% over the course of two years before allowing it to crash. The lawsuit also claims that Dogecoin was security and that Musk was aware of its lack of intrinsic value.

Musk’s legal team called the lawsuit a “fanciful work of fiction” based on Musk’s “innocent and frequently silly tweets” about Dogecoin. Musk is widely regarded as one of the most innovative and visionary entrepreneurs of his generation; however, he is also known for his controversial statements and management style, which have earned him criticism from some quarters.

The lawyers went on to say that tweeting in support of a cryptocurrency is not illegal. The motion also claims that the plaintiffs have failed to present any material misrepresentation and that the statements in question are ambiguous, subjective, and puffery. Furthermore, the plaintiffs have failed to establish a strong inference of intent to commit fraud.

The motion concludes by requesting the court to dismiss the complaint in its entirety and put an end to the “frivolous and baseless” class action.

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.

Musk’s lawyers said

The Dogecoin Foundation, a nonprofit organization is also a defendant and is seeking the lawsuit to be dismissed.

Dogecoin (DOGE) Today

Dogecoin is one of the most popular cryptocurrencies, owing in large part to Elon Musk’s interest in it. The latter has been vocal about DOGE, even discussing it on national television. However, Musk has been silent on DOGE in recent months, leaving investors concerned and turning their attention to Ren Q Finance, a new DeFI platform that is sweeping the industry (RENQ).

https://twitter.com/TDogewhisperer/status/1641893129426030592

Many have stated that without Elon Musk’s support, DOGE may not be able to maintain its current level of value and popularity.

At the time of publication, DOGE was trading at $0.07, recording a decrease of 4.87% on the day and a spike of 6.99% across the previous week.

In conclusion, the $258 billion Dogecoin lawsuit against Elon Musk is an important case that will have far-reaching implications for the regulation of cryptocurrencies and the role of social media in financial markets. While the outcome of the case is uncertain, it is clear that the debate over the regulation of cryptocurrencies is far from over.