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Tesla boss Elon Musk on Wednesday pleaded guilty to insider trading against his followers using Dogecoin (DOGE), alleged memecoin investors, in a court filing against the tech entrepreneur.
The allegations are a follow-up to a $258 billion class action lawsuit filed by the same group in June 2022, which accused Musk and his companies of causing hundreds of billions in damages to Dogecoin holders.
Elon Musk Dogecoin Agenda
Per amended filing In a Manhattan federal court on May 31, Elon Musk committed “a deliberate course of carnival barking market manipulation” with the intent to pump up the price of Dogecoin through a “hypetic circus.”
These stunts also include his public appearances and social media activity promoting Dogecoin since April 2019. These stunts increased the price of Dogecoin by 36,000% to $0.70+ by May 2021. Today, DOGE trades down 90% from that high.
Labeling the tycoon the “predator supreme” and his millions of Twitter followers as the victim, “Musk’s pretense that Dogecoin’s promotion was just good fun – not to be taken seriously – is not credible.”
The lawsuit states that several studies have already demonstrated the effect of Elon Musk’s tweets on the price of Dogecoin. Indeed, Musk’s announcements that he would start Accept Dogecoin in SpaceX in 2021, and its visit At the Twitter headquarters, each has contributed to the changing price of DOGE since the company was acquired last year.
Musk used his influence again by changing Twitter’s blue bird logo to a picture of the Doge meme’s Shiba Inu for three days, which helped pump Coin price up to 30%.
The filing said Musk and Tesla traded profitably around the billionaire’s “desired moves,” citing blockchain records as evidence.
Specifically, the lawsuit claims it has tracked down a wallet address – DH5ya – that allegedly belonged to Musk, and became the largest single holder of Dogecoin as of February 2021. That wallet sold millions of dollars worth of Dogecoin multiple times in April 2021.
securities fraud?
A key part of the lawsuit is the presumption that Dogecoin is an unregistered security under the current standards of the US Securities and Exchange Commission.
Musk was founded in 2013 by Billy Marcus and Jackson Palmer, the creators of Dogecoin – but they haven’t been involved in the project’s development for years. Marcus himself often jokes on Twitter with Elon Musk, both of whom often make light-hearted comments about cryptocurrency on Twitter.
When the original lawsuit was filed last year, Musk’s lawyers said the lawsuit was fictitious. “There is nothing illegal about tweeting words of support or funny pictures about a legitimate cryptocurrency that has a market cap of nearly $10 billion,” he said.
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Tesla boss Elon Musk on Wednesday pleaded guilty to insider trading against his followers using Dogecoin (DOGE), alleged memecoin investors, in a court filing against the tech entrepreneur.
The allegations are a follow-up to a $258 billion class action lawsuit filed by the same group in June 2022, which accused Musk and his companies of causing hundreds of billions in damages to Dogecoin holders.
Elon Musk Dogecoin Agenda
Per amended filing In a Manhattan federal court on May 31, Elon Musk committed “a deliberate course of carnival barking market manipulation” with the intent to pump up the price of Dogecoin through a “hypetic circus.”
These stunts also include his public appearances and social media activity promoting Dogecoin since April 2019. These stunts increased the price of Dogecoin by 36,000% to $0.70+ by May 2021. Today, DOGE trades down 90% from that high.
Labeling the tycoon the “predator supreme” and his millions of Twitter followers as the victim, “Musk’s pretense that Dogecoin’s promotion was just good fun – not to be taken seriously – is not credible.”
The lawsuit states that several studies have already demonstrated the effect of Elon Musk’s tweets on the price of Dogecoin. Indeed, Musk’s announcements that he would start Accept Dogecoin in SpaceX in 2021, and its visit At the Twitter headquarters, each has contributed to the changing price of DOGE since the company was acquired last year.
Musk used his influence again by changing Twitter’s blue bird logo to a picture of the Doge meme’s Shiba Inu for three days, which helped pump Coin price up to 30%.
The filing said Musk and Tesla traded profitably around the billionaire’s “desired moves,” citing blockchain records as evidence.
Specifically, the lawsuit claims it has tracked down a wallet address – DH5ya – that allegedly belonged to Musk, and became the largest single holder of Dogecoin as of February 2021. That wallet sold millions of dollars worth of Dogecoin multiple times in April 2021.
securities fraud?
A key part of the lawsuit is the presumption that Dogecoin is an unregistered security under the current standards of the US Securities and Exchange Commission.
Musk was founded in 2013 by Billy Marcus and Jackson Palmer, the creators of Dogecoin – but they haven’t been involved in the project’s development for years. Marcus himself often jokes on Twitter with Elon Musk, both of whom often make light-hearted comments about cryptocurrency on Twitter.
When the original lawsuit was filed last year, Musk’s lawyers said the lawsuit was fictitious. “There is nothing illegal about tweeting words of support or funny pictures about a legitimate cryptocurrency that has a market cap of nearly $10 billion,” he said.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
