Elon Musk and his company Tesla recently won a major victory in a lawsuit alleging market manipulation regarding the cryptocurrency Dogecoin. A federal judge dismissed the $258 billion lawsuit, saying that the charges against Musk and Tesla were not well founded.
A Resounding Trial
The lawsuit, filed by a group of investors, accused Elon Musk of using his influence to manipulate the price of Dogecoin through tweets and public appearances, including when he appeared on the Saturday Night Live in 2021. The complainants alleged that Musk orchestrated a “pump and dump” strategy, raising the price of Dogecoin by more than 36,000% before letting it fall, causing significant financial losses to investors. However, Justice Alvin Hellerstein ruled that the market manipulation charges were too vague and that Musk’s statements about Dogecoin were more of a “wishful thinking” and “exaggeration”, with no factual basis.
The Impact on the Cryptocurrency Market
This legal victory could have significant repercussions on the cryptocurrency market, especially for Dogecoin. Although the price of Dogecoin has slightly increased after the announcement of the decision, it remains in an accumulation phase, which means that investors are closely monitoring its evolution. The court’s decision could strengthen investors' confidence in Dogecoin’s legitimacy and Elon Musk’s ability to positively influence its future. Nevertheless, this case raises broader questions about the regulation of cryptocurrencies and the responsibility of public figures in market manipulation.
