Elon Musk is among the most active investors in the Dogecoin crypto ecosystem. The tech mogul’s interventions in this market regularly impact the price of the asset. A trend that is not to the taste of some investors who feel cheated by the actions of the billionaire.
A class action against Elon Musk for improper use of his notoriety
Recently, Elon Musk replaced the Twitter logo with that of Dogecoin. By this simple change, the American billionaire had pushed the prices of the asset upwards. An action poorly received by several DOGE holders.
They accuse the boss of Twitter of improperly using his notoriety on social media for his benefit. Approach which, according to them, would harm many American users among the poorest.
It is therefore on the strength of these arguments that a collective of Dogecoin users brings legal action against Elon Musk. The latter is also revising a complaint previously filed, in June 2022, against the businessman, shortly before the acquisition of Twitter.
Now, therefore, the tech mogul is being prosecuted for insider trading. He is accused of knowingly manipulating the price of the Dogecoin memecoin. This, to carry out strategic operations. Transactions that would have allowed him to make a profit at the expense of other investors.
“This is a class action lawsuit for securities fraud stemming from deliberate market manipulation and insider trading by the world’s richest man, Elon Musk, who misappropriated a emergent phenomenon of popular culture to promote itself and its companies, and to inflate its obscene fortune”, reads the amended complaint.
For the moment, the billionaire has not reacted to these allegations. And given the scope of the charges against the American economic operator, it is not excluded that the SEC invites itself into the case.
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