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Elon Musk Seeks Dismissal Of $258B Dogecoin Lawsuit In Court Filing

Published 04/01/2023, 06:07 AM
Updated 04/01/2023, 06:30 AM
© Reuters.  Elon Musk Seeks Dismissal Of $258B Dogecoin Lawsuit In Court Filing

  • Elon Musk requested the dismissal of a $258 billion lawsuit over Dogecoin support.
  • Musk’s lawyers argued the allegations against him were unfounded and tweets were innocent.
  • The investors failed to provide evidence of deception, and Musk’s statements were too ambiguous.

Sources reported that on Friday, Elon Musk requested a U.S. judge to dismiss a $258 billion lawsuit alleging him of operating a pyramid scheme in support of the Dogecoin cryptocurrency.

Attorneys representing Elon Musk and his electric vehicle firm Tesla (NASDAQ:TSLA) Inc referred to the lawsuit brought by Dogecoin investors as a “fantastical work of fiction” in a filing made in a Manhattan federal court on Friday evening. They argued that the allegations against Musk were unfounded, and that his tweets regarding Dogecoin were innocent and at times, absurd.

Musk’s legal team further argued that the investors failed to provide any evidence of how the Twitter CEO planned to deceive anyone or what risks he concealed. They also asserted that Musk’s statements, including “Dogecoin Rulz” and “no highs, no lows, only Doge,” were too ambiguous to support allegations of fraud.

The lawyers went on to emphasize that expressing support for a legitimate cryptocurrency with a market cap of almost $10 billion through humorous or positive tweets is not illegal. They further added,

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This court should put a stop to plaintiffs’ fantasy and dismiss the complaint.

Additionally, in a footnote, Musk’s legal representatives dismissed the investors’ assertion that Dogecoin should be classified as a security. Meanwhile, responding to the filing, Evan Spencer, the investors’ attorney, stated via email that they were even more confident in the success of their case.

The investors claimed that Musk, who is currently the second-wealthiest individual globally, deliberately inflated Dogecoin’s value by over 36,000% in two years before allowing it to plummet.

Moreover, the investors accused Musk of making billions of dollars in profit at the expense of other Dogecoin investors, even though he knew the currency was worthless. They cited Musk’s “Saturday Night Live” appearance where he called Dogecoin a “hustle.” The lawsuit is seeking $258 billion in damages, triple the estimated decline in Dogecoin’s market value in the 13 months prior to the suit being filed. However, the Dogecoin Foundation, a nonprofit organization, is also named as a defendant and is attempting to have the case dismissed.

The post Elon Musk Seeks Dismissal Of $258B Dogecoin Lawsuit In Court Filing appeared first on Coin Edition.

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