Elon Musk and his company Tesla have just won a major legal victory against Dogecoin investors. Federal Judge Alvin Hellerstein dismissed the lawsuit accusing the billionaire and his company of manipulating the price of the crypto, marking a significant victory for the Musk camp.
A charge dismissed, major implications
Federal Judge Alvin Hellerstein dismissed a class-action lawsuit against Elon Musk and Tesla on Thursday, ending a months-long legal saga. The plaintiffs accused the billionaire of artificially inflating the price of Dogecoin by 36,000% over two years before causing it to crash.
The lawsuit, which sought $258 billion in damages, was based on several factors. Investors blamed Musk for his tweets, his appearance on Saturday Night Live in 2021, and even the temporary change of Twitter's logo in April 2023.
According to their argument, Musk orchestrated these actions to manipulate the market to his advantage. However, Judge Hellerstein swept away these allegations, calling them “ aspirational and fanciful, not factual and susceptible to falsification “.
He also noted that the charges of market manipulation and insider trading were too vague to warrant prosecution. The decision, issued with prejudice, closes the door on any future attempts to reintroduce the case to court.
Musk and Dogecoin, a complex relationship in the spotlight
The move comes amid intense speculation about Musk’s ties to Dogecoin. Recently, prominent crypto figure Charles Hoskinson speculated that Musk could own up to 20% of Dogecoin’s total supply.
While unproven, this assumption fuels the debate over the real influence of figures like Musk on the crypto market. Musk’s legal victory could paradoxically intensify the scrutiny of his activities in the crypto space.
As Dogecoin's price fell 5.5% in the week following the verdict, attention remains focused on the “Dogefather's” every move.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
