Elon Musk Accused of Insider Trading
Elon Musk is facing allegations of insider trading over Dogecoin in the ongoing court case Johnson et al v. Musk et al. Investors have launched a proposed class action lawsuit against Musk, accusing him of manipulating the cryptocurrency Dogecoin, leading to substantial financial losses for them.
The lawsuit was filed in Manhattan federal court and includes a range of accusations against Musk. The investors claim that Musk exploited his influential presence on social media, specifically Twitter, and other public platforms to manipulate Dogecoin’s value for his profit. They allege that he made strategic use of paid online influencers, his 2021 appearance on NBC’s “Saturday Night Live”, and other publicity maneuvers to achieve this.
One particular incident that the investors highlight is when Musk replaced Twitter’s blue bird logo with the Dogecoin Shiba Inu logo, leading to a 30% jump in Dogecoin’s price. The investors assert that Musk then sold about $124 million of Dogecoin, profiting from the price increase he allegedly orchestrated
Musk and Tesla have sought to dismiss the allegations, describing the second amended complaint as a “fanciful work of fiction.” Alex Spiro, a lawyer for Musk and Tesla, declined to comment on the latest developments
The Lawsuit’s Progress
The lawsuit, officially known as Johnson et al v. Musk et al, has been ongoing since June last year. It has seen two amendments since its inception, and a third one is likely to be allowed. U.S. District Judge Alvin Hellerstein has stated that he would likely permit the third amended complaint. The Dogecoin Foundation, which was initially included as a defendant, has been dismissed from the case
Q: What is Elon Musk being accused of? A: Elon Musk is being accused of insider trading and manipulating the value of the cryptocurrency Dogecoin. The investors claim that Musk used his influence on social media, particularly Twitter, and other public platforms to artificially inflate the value of Dogecoin, resulting in significant financial losses for them.
Q: How has Musk allegedly manipulated Dogecoin? A: According to the investors, Musk employed various strategies to manipulate Dogecoin’s value. One key example they cite is when Musk replaced Twitter’s blue bird logo with Dogecoin’s Shiba Inu dog logo, which led to a 30% increase in Dogecoin’s price. Musk allegedly profited from this price increase by selling about $124 million of Dogecoin.