Elon Musk and Tesla Avoid $258B Dogecoin (DOGE) Manipulation Lawsuit

Tatevik Avetisyan
By Tatevik Avetisyan 2 Min Read
Elon Musk and Tesla Avoid $258 Billion Dogecoin (DOGE) Manipulation Lawsuit

YEREVAN (CoinChapter.com) — Elon Musk and Tesla have avoided a $258 billion lawsuit accusing them of manipulating Dogecoin’s price after the U.S. District Court for the Southern District of New York dismissed the case on Aug. 29. Notably, U.S. District Judge Alvin Hellerstein ruled that Musk’s tweets about Dogecoin were “aspirational and puffery, not factual,” adding that “no reasonable investor” could rely on Musk’s tweets for investment decisions.

Order Granting Motion to Dismiss by U.S. District CourtSource: U.S. District Court, Southern District of New York
Order Granting Motion to Dismiss by U.S. District Court. Source: U.S. District Court, Southern District of New York

The lawsuit, filed by a group of Dogecoin investors in June 2022, alleged that Musk and Tesla manipulated Dogecoin’s price by over 36,000% within two years, then allowed it to crash. The investors claimed Musk used his status as the world’s richest man to run a Dogecoin “Pyramid Scheme.”

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 Class Action Complaint Against Elon Musk and TeslaSource: U.S. District Court, Southern District of New York
Class Action Complaint Against Elon Musk and Tesla. Source: U.S. District Court, Southern District of New York

Musk’s Tweets Were Exaggerated

Judge Hellerstein rejected the investors’ claims, noting that Musk’s statements were often exaggerated or humorous. The court found that Musk’s tweets did not constitute a deliberate attempt to mislead investors or create a pyramid scheme. Musk’s legal team had described the lawsuit as a “fanciful work of fiction.”

The dismissal ends the investors’ pursuit of $258 billion in damages. The ruling highlights the court’s stance on interpreting high-profile individuals’ statements on social media.

Dogecoin’s price showed little reaction to the lawsuit’s dismissal. It decreased by 0.79% in the last 24 hours, trading at around $0.1001. Over the past month, Dogecoin has declined by 20%.

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 Dogecoin Price and Market Stats OverviewSource: CoinMarketCap
Dogecoin Price and Market Stats Overview. Source: CoinMarketCap

The lack of market movement suggests that the dismissal did not surprise investors. The cryptocurrency’s recent decline aligns with broader market trends rather than any direct consequence of the lawsuit.

Tatevik Crypto Journalist CoinChapter

Tatevik Avetisyan

Tatev Avetisyan is a Markets Writer and Analyst at CoinChapter, covering cryptocurrency markets, policy, and regulation. With over seven years of experience in business and marketing development, she has spent the past two years specializing in digital assets and has authored more than 2,000 articles on crypto markets and regulatory developments.She contributes as a guest writer to leading industry publications and is a prominent Web3 advocate in Armenia through Web3Armenia. Her work reflects a broader focus on artificial intelligence and Web3 technologies. Tatev maintains a diversified crypto portfolio, with Bitcoin as her primary holding above CoinChapter’s $1,000 disclosure threshold.

5 Comments

5 responses to “Elon Musk and Tesla Avoid $258B Dogecoin (DOGE) Manipulation Lawsuit”

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