In a surprising turn of events, billionaire entrepreneur Elon Musk has requested the dismissal of a $258 billion lawsuit tied to Dogecoin. According to reports, the lawsuit was filed by investors who alleged that Elon Musk operated a pyramid scheme to promote Dogecoin. On Friday, Musk and his legal representatives asked a United States judge to dismiss the case refuting all claims.
Elon Musk seeks a way out of the DOGE lawsuit
According to a Reuters report on April 1, Elon Musk’s lawyers stated that the lawsuit filed by Dogecoin investors in June 2022 against Musk was a “fanciful work of fiction” in Manhattan’s federal court on March 31.
According to the lawyers, the investors never explained how Musk intended to defraud anyone or what risks he concealed. Moreover, his statements like “Dogecoin Rulz” and “no highs, no lows, only Doge” were too ambiguous to support a fraud claim.
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.
Musk’s Lawyers
The lawyers also rejected the investors’ claim that Dogecoin was a security in a footnote. Musk’s attorneys attempted to convince the judge to “throw out” the multibillion-dollar lawsuit by referring to his Dogecoin tweets as “innocuous and often silly.”
According to reports, the investors used Musk’s appearance on Saturday Night Live in May 2021, where he played “a fictitious financial expert” and called Dogecoin “a hustle,” as a reference point in their lawsuit.
Musk was accused of driving Dogecoin’s price up “more than 36,000% over two years and then allowing it to crash,” with the initial filing last year alleging that he used his position as the world’s richest man to operate and manipulate the Dogecoin pyramid scheme.
The supposed Musk price effect on Dogecoin
According to the court filing, investors made investment decisions based on Elon Musk’s appearance on the “Weekend Update” segment of NBC’s “Saturday Night Live.” Minutes after the television appearance, the price of DOGE plummeted by more than 25%, falling to as low as $.50 from a high of $.66 at the beginning of the show.
Musk appeared to make numerous efforts after his television appearance to rekindle people’s interest in Dogecoin. A few days later, he informed his Twitter followers that he was collaborating with Doge developers to improve system efficiency, which could be “potentially promising.”
During the March 2022 market crash, Musk told his Twitter followers that he would not sell his Bitcoin, Ether, and DOGE holdings. The $258 billion damages figure is three times the estimated decline in Dogecoin’s market value in the thirteen months preceding the lawsuit filing.
The nonprofit Dogecoin Foundation is also a defendant seeking dismissal of the lawsuit. Evan Spencer, the attorney representing the investors, reportedly stated in an email, “we are more confident than ever that our case will be successful.”
Elon Musk is no stranger to courtroom drama and investor lawsuits. Multiple lawsuits have been filed in response to Musk’s tweets on Twitter, which he owns. For example, on Feb. 3, a San Francisco jury found him not liable for tweeting in August 2018 that he had secured financing to take Tesla private.
Dogecoin’s reaction to the development
According to on-chain metrics from crypto intelligence tracker Santiment, both the number of active DOGE addresses and the number of Dogecoin transactions increased. The increase in metrics indicates the meme coin’s rising popularity and the likely support of its holders for Musk’s move.
Typically, an increase in on-chain activity is viewed as bullish for an asset. The price of the Shiba-Inu-themed cryptocurrency increased by nearly 4 percent overnight. DOGE holders are optimistic as the meme coin resumes its ascent.
