A federal court in Manhattan has dismissed a lawsuit against Elon Musk and Tesla accusing them of manipulating the cryptocurrency Dogecoin market.
Lawsuit Claims
The lawsuit, filed in June 2023, claimed that Elon Musk and Tesla manipulated the Dogecoin market, inflating its value by over 36,000%. The plaintiffs argued that Musk's social media promotion of Dogecoin and his endorsement of it for Tesla merchandise caused a dramatic price spike. They accused Musk of leveraging his influence to drive up the cryptocurrency's value and then profiting from its decline.
Court’s Ruling
Judge Hellerstein decisively rejected the plaintiffs' claims. The court determined that Musk’s comments about Dogecoin were not fraudulent but were rather aspirational and promotional. Statements about Dogecoin being the 'future currency of Earth' or being used to buy Teslas were deemed as promotional rather than actionable fraud. The judge noted that there was no substantial evidence to support claims that Musk or Tesla were involved in unfairly manipulating the market or trading Dogecoin to their advantage.
Reaction from Parties
Elon Musk and Tesla have welcomed the court’s decision, viewing it as a validation of their actions. Musk has previously stated that his comments about Dogecoin were humorous and did not intend to mislead investors. Currently, Dogecoin is trading at $0.1009 with almost no change over the last 24 hours.
The court ruling has closed the chapter on the Dogecoin manipulation case, confirming that Elon Musk's statements were promotional and not fraudulent.
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