2-6-2023 Investors have launched a proposed class-action lawsuit against Elon Musk, CEO of Tesla, accusing him of insider trading and manipulating the popular cryptocurrency Dogecoin, resulting in billions of dollars in losses. The lawsuit was filed in Manhattan federal court on Thursday and alleges that Musk employed various tactics, including the use of Twitter, paid influencers, and a high-profile appearance on NBC’s “Saturday Night Live” in 2021, to profit from trading at the expense of investors through Dogecoin wallet transactions controlled by himself or Tesla.
According to the lawsuit, investors sold approximately $124 million (RM569 million) worth of Dogecoin, including transactions made after Musk changed Twitter’s blue bird logo to a Dogecoin Shiba Inu’s head in April, causing a 30 percent surge in the price of the cryptocurrency.
The lawsuit’s text asserts that Musk managed to manipulate the market through “touting, market manipulation, and an elaborate process of insider trading,” allowing him and his company to avoid losses while leaving investors in a disadvantaged position.
Investors claim that Musk, who held the second spot on Forbes magazine’s list of the world’s richest individuals, intentionally inflated the price of Dogecoin by more than 360 times over two years and subsequently allowed it to plummet.
When approached for comment, Spyro, the lawyer representing Musk and Tesla, declined to provide a statement. The lawyer appointed by the investors did not respond to media inquiries.
