Elon Musk, the CEO of Tesla, has successfully put to rest a $258 billion class-action lawsuit that accused him of orchestrating a cryptocurrency pyramid scheme centered on Dogecoin. The lawsuit, initiated in June 2022 by the plaintiff alleged that Musk used his social media presence to manipulate the price of Dogecoin, profiting at the expense of investors.
The illegal acts of the defendants that the plaintiffs claimed in the case include but are not limited to wire fraud, operating a gambling enterprise, false advertising, and commission of deceptive business practices by Musk. They claimed punitive treble damages of up to $172 billion and another $86 million in other monetary damages, as they feared. Furthermore, they said that Tesla should take responsibility for what Musk threatened or alleged to have done.
Legal Defense Secures Dismissal of Charges
In response, Musk’s legal team filed a motion in April to dismiss the lawsuit without the possibility of amendment. They claimed the plaintiffs’ allegations were baseless, full of “inference, speculation and innuendo’, as opposed to prima facie evidence. The defense team also postulated that Musk was not an insider of Dogecoin and, therefore, was not legally bound by the public. His use of social media handles such as the “Dogefather,” they posited, did not make him an insider or provide him with fact-based information to support the plaintiffs’ claims.
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As a result of these arguments, the court sided with Musk’s legal representation and threw out the case. This decision means that Musk and Tesla are exonerated from all the accusations related to the Dogecoins campaign.
Conclusion
The court’s decision to dismiss this lawsuit represents a significant legal win for Elon Musk. It highlights the difficulties in pursuing legal action based on social media activities within the unpredictable cryptocurrency market. This case also sets a precedent for similar claims involving public figures and their influence on digital currencies.
Also Read: A massive amount of Dogecoin has been withdrawn from the Bankrupt Exchange, Bittrex
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.