• A group of Dogecoin investors have filed a lawsuit against Elon Musk alleging market manipulation and insider trading.
• The investor lawyers sought to disqualify Musk’s attorneys for engaging in oppressive misconduct.
• The filing claims that Musk has used Twitter posts, SNL appearance, among other tactics to manipulate the trading price of Dogecoin.
Dogecoin Investors File Lawsuit Against Elon Musk
A group of Dogecoin investors have filed a lawsuit against Elon Musk accusing him of market manipulation and insider trading of the popular memecoin, Dogecoin (DOGE). The investor lawyers requested that the judge remove Musk’s attorneys from the lawsuit for engaging in a pattern of depreciating and oppressive misconduct in a petition to the federal court in Manhattan.
Accusations Of Market Manipulation And Insider Trading
The investors allege that Musk has used his micro-blogging site Twitter’s posts, his participation in NBC’s “Saturday Night Live” in 2021 and other planned publicity stunts to trade profitably at their cost through several Dogecoin wallets that he or Tesla control. They also accused him of selling $124 million worth of Dogecoins after he replaced the Twitter logo with the DOGE Shiba Inu dog logo which caused its trading price to surge above 30%.
Lawyers Seek Disqualification For Misconduct
The plaintiff’s lawyers have requested that the judge dismiss Musk’s attorney as trials should be defended by lawyers, not apologists. Furthermore, they argued that Tesla is a publicly listed company whose CEO cannot directly connect the company’s legal defense to his goals due to Alex Spiro, Elon Musk’s lawyer writing a letter demanding his dismissal from the case.
Proof Of Defendant’s Dirty Tactics
The filings also added as proof of defendant’s dirty tactics was an article by New York Post on June 15th which highlighted how one tweet by Elon caused an uproar on Wall Street driving up DOGE prices significantly before quickly crashing down again soon after.
This case against Elon highlights how powerful one individual can be over an entire asset class with one single tweet leading to massive losses or gains for traders who were caught off guard by such sudden changes without any prior warning or knowledge about what was going on behind closed doors. Overall this case serves as an example for all future lawsuits involving cryptocurrencies and their effects on financial markets around the world.