Musk Slapped with $258 Billion Lawsuit Over Alleged Fraud

• Musk requested the judge to drop the $258 billion lawsuit.
• Dogecoin investors accuse the second-richest man of defrauding people.
• The Tesla CEO allegedly used Doge for a pump and dump scheme.

The Tesla CEO was accused of running a ‘pump-and-dump’ to spike the price of Dogecoin. Musk requested the judge to drop the $258 billion lawsuit 

Dogecoin, one of the most popular meme-cryptocurrencies other than Shiba Inu is Musk’s favorite coin. Doge 

Calling the lawsuit a “fanciful work of fiction,” lawyers for Musk’s EV company, Tesla, said that “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”

This court should put a stop to plaintiffs’ fantasy and dismiss the complaint,” the lawyers added.

The investors claimed that Dogecoin qualified as a security, which the lawyers dismissed in a footnote. Evan Spencer, the lawyer representing the investors, said in an email-statement – “We are more confident than ever that our case will be successful.”

As reported by Forbes, Musk was accused of jacking up the price of Dogecoin by nearly 36,000% over two years and letting if fall rapidly. The plaintiffs referred to Musk’s appearance on NBC’s Saturday Night Live show “Weekend Update” where he played a fictitious financial expert calling Dogecoin “a hustle.”

As per Reuters, “the case is Johnson et al v. Musk et al, U.S. District Court, Southern District of New York, No. 22-05037.”

Musk has faced several lawsuits over his tweets. Last month, a San Francisco jury found him not liable for a tweet saying that he had arranged for funds to privatize Tesla, per Reuters.

Amid news of Musk’s request for dismissal of the charge, Doge price surged. Doge went up 4% intraday. Also, a whale abruptly moved 350 million of Doge coins, according to Whale Alert, a whale monitoring platform. At the time of the whale movement, the transaction amounted to $26 million.

Musk’s tweets gather views in hundreds of thousands and market reactions are almost always evident. Last year the second-richest man acquired the micro-blogging platform for a whoping $44 billion after dilly dallying on the deal. Also, Musk “appointed” his dog as the CEO of the social media website.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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