Elon Musk’s legal team has asked a United States judge to dismiss the $258 billion lawsuit filed by Dogecoin investors, calling it a “fanciful work of fiction.” In June 2022, a group of investors accused Musk of operating a pyramid scheme to promote Dogecoin, causing its price to surge by more than 36,000% over two years before crashing.
Musk’s lawyers argued that his Dogecoin-related comments were “innocuous and often silly tweets” and “too vague” to warrant a fraud claim. They cited Musk’s tweets, including “Dogecoin Rulz” and “no highs, no lows, only Doge,” as an example of his harmless support for a legitimate cryptocurrency.
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion,” Musk’s lawyers said.
The investors pointed to Musk’s appearance on Saturday Night Live in May 2021, where he called Dogecoin “a hustle” and portrayed a “fictitious financial expert,” as evidence of his role in manipulating the price of the cryptocurrency.
The lawsuit has been closely watched by the cryptocurrency community, with many wondering about the implications of holding influential figures accountable for their actions. Some experts have noted that while Musk’s tweets may not have been illegal, they could still have had a significant impact on the market.
Regardless of the outcome of the case, it is clear that the controversy surrounding Dogecoin and Musk’s involvement in it will continue to attract attention. As the cryptocurrency market continues to grow and evolve, it remains to be seen how regulators and investors will respond to the challenges posed by new technologies and digital assets.