The altered complaint stated, “This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading.”
Investors in Dogecoin have brought a revised class-action complaint against Elon Musk, claiming that he engaged in insider trading by failing to reveal that he had bought a sizable position in the cryptocurrency before tweeting about it.
Investors recently accused Elon Musk of using his social media presence and media appearances to manipulate the cryptocurrency market in court documents. According to the complaint, Musk took use of his connections on Twitter and other websites to make money off of trades involving the cryptocurrency Dogecoin (DOGE) at the detriment of other investors.
One example of Musk’s attempts to drive up the price of DOGE was his decision to replace Twitter’s logo with the Dogecoin logo.
The investors’ lawsuit was first submitted in June 2022, and it has since undergone numerous revisions to include Musk’s conduct. They contend that the DOGE token should be categorized as a security in accordance with the guidelines established by the U.S. Securities and Exchange Commission and seek to hold Musk liable for insider trading of the DOGE.
This legal case raises questions about the influence of well-known cryptocurrency market participants and the possible effects of their remarks and deeds on the price and trading behavior of virtual assets like Dogecoin.
The investors are seeking damages of $258 billion, which is the amount that they allege they lost when the price of Dogecoin crashed after Musk’s tweets.
Musk has denied the allegations, saying that he never intended to manipulate the price of Dogecoin. He has also said that he is not a financial advisor and that people should not make investment decisions based on his tweets.
The lawsuit is the latest legal challenge facing Musk, who is also facing lawsuits from investors who allege that he misled them about Tesla’s production capabilities and from former employees who allege that he created a hostile work environment.
The outcome of the lawsuit is uncertain, but it could have a significant impact on the cryptocurrency market. If Musk is found liable, it could discourage other celebrities and high-profile individuals from promoting cryptocurrencies. It could also lead to increased regulation of the cryptocurrency market.