Dogecoin investors have withdrawn their class action lawsuit accusing Elon Musk of manipulating the cryptocurrency market. Originally, the investors claimed Musk engaged in fraud and insider trading by influencing Dogecoin prices through tweets, public statements, and an appearance on “Saturday Night Live.” After the case was dismissed on August 29, the investors dropped their appeal.
Key Points:
- Allegations of Market Manipulation: Investors accused Musk of manipulating Dogecoin’s price through public statements, including calling it “the future currency of Earth” and stating plans to send it to the Moon with SpaceX.
- Legal Resolution: Judge Alvin Hellerstein ruled that Musk’s comments did not constitute securities fraud and dismissed claims of insider trading as unsubstantiated.
- Initial Damages: The investors initially sought $258 billion in damages and revised their complaints multiple times over two years before the case was rejected.
- Withdrawal of Claims: Both parties retracted their respective motions in Manhattan’s federal court, awaiting the judge’s final approval.
- Market Reaction: Following Trump’s election win and Musk’s appointment to lead the Department of Government Efficiency (DOGE), Dogecoin’s price surged over 130%, reaching its highest level since May 2021.
Musk’s New Legal Action:
Amid these events, Musk has filed a lawsuit against Sam Altman of OpenAI, citing that the company planned to launch its cryptocurrency in 2018, a move he opposed.
