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Investors Amend Lawsuit Against Elon Musk, Citing Dogecoin Insider Trading

Investors Amend Lawsuit Against Elon Musk, Citing Dogecoin Insider Trading

DOGE investors claim that Musk changed Twitter's logo to manipulate the price of Dogecoin.

Dogecoin (DOGE) investors have sought court approval to revise a class-action lawsuit against famous entrepreneur and Twitter owner Elon Musk.

According to a document filed on May 31st with the United States District Court for the Southern District of New York, the plaintiffs contend that Musk leveraged his substantial Twitter following and public appearances to execute a calculated campaign of cryptocurrency market manipulation.

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As stated in the lawsuit, Musk allegedly capitalized on the trading of Dogecoin, causing price hikes that ultimately disadvantaged other investors. The investors cited the alteration of Twitter's logo to reflect the Dogecoin emblem as one of the moves boosting DOGE prices.

On April 3rd, Musk swapped the Twitter logo for Dogecoin's shortly after his legal representatives petitioned for the second revised lawsuit dismissal. In their filing, they claimed that "funny pictures" and "tweeting words of support" did not equate to fraudulent behavior.

The investors originally filed their complaint in June 2022. The group has since revised the lawsuit multiple times. The amended complaint not only accuses Musk of Dogecoin insider trading but also argues that the token qualifies as a security under US Securities and Exchange Commission regulations.

This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk, who hijacked an emergent pop-culture phenomenon to cross-promote himself and his companies, and to pad his obscene fortune, preying on the earnest hopes of vulnerable Americans, including war veterans, blue-collar workers, and the elderly.

Musk has been consistently vocal about Dogecoin and other cryptocurrencies, often triggering price fluctuations in the memecoin.

It is worth noting that Musk revealed his plan to step down as CEO in June, and Linda Yaccarino, formerly NBCUniversal's chair of global advertising and partnerships, is set to succeed him. As of the time of reporting, Musk had not made any public comments on the updated lawsuit.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.



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