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Dogecoin [DOGE]: Elon Musk cites this reason to dismiss $258 billion lawsuit

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Dogecoin [DOGE]: Elon Musk cites this reason to dismiss $258 billion lawsuit

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  • Elon Musk’s lawyers have reportedly asked a US judge to dismiss a $258 billion Dogecoin lawsuit filed by investors.
  • Musk’s lawyers described his Dogecoin statements as “innocuous and often silly tweets.”

Elon Musk and his lawyers reportedly asked a US judge this week to dismiss a $258 billion lawsuit filed by investors who claimed that Musk ran a pyramid scheme to promote the cryptocurrency Dogecoin.

According to a 1 April Reuters report, Musk’s lawyers called the lawsuit filed by Dogecoin investors against Musk in June 2022 a “fanciful work of fiction” in Manhattan’s federal court on 31 March.

Musk’s lawyers told the courts that his social media support for Dogecoin, including comments like “Dogecoin Rulz” and “no highs, no lows, only Doge,” was too vague to warrant a fraud claim.

The lawyers said:

“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 also described his Dogecoin statements as “innocuous and often silly tweets” in an attempt to persuade the judge to dismiss the multibillion-dollar lawsuit.

Musk’s support for Dogecoin

Musk was accused of driving up the price of Dogecoin by over 36,000% over two years and then allowing it to crash, with the initial filing last year alleging that he:

“Used his pedestal as the World’s Richest Man to operate and manipulate the Dogecoin Pyramid Scheme.”

According to reports, the investors referred to Musk’s May 2021 Saturday Night Live (SNL) appearance, in which he played “a fictitious financial expert” and called Dogecoin “a hustle,” as a point in their lawsuit.

DOGE dropped more than 25% in the minutes following the SNL show. It went as low as $0.50 from $0.66 at the beginning of the broadcast.

Following his TV appearance, Musk appeared to make several attempts to rekindle public interest in Dogecoin.

Furthermore, during the crypto market collapse in March 2022, Musk tweeted that he would not sell his holdings.

Evan Spencer, the lawyer representing the investors, reportedly believes that “our case will be successful.”

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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