Musk Faces Class Action Lawsuit for Manipulating Dogecoin Prices? Judge: Not Founded!

On August 29, US time, a class-action lawsuit accusing Musk of manipulating the price of dogecoin and seeking $258 billion in compensation was dismissed.

Two years ago, Musk faced this class-action lawsuit, with multiple dogecoin investors collectively accusing him of pump-and-dump schemes, market manipulation, and insider trading caused investors to lose billions. The suit alleged that Musk misused his position as the world’s richest man to inflate the price of Dogecoin over “36,000%” and then let its price crash, leading to losses for investors. The plaintiffs argued that Musk’s actions could be justified as a “Dogecoin Pyramid Scheme,” where he promoted the cryptocurrency to profit from the volatility he allegedly created. The plaintiffs demanded $258 billion in compensation.

The plaintiffs pointed out that in April 2023 in which Musk sold Dogecoin after swapping Twitter’s blue bird logo with Dogecoin’s Shiba Inu dog. The move led to a 30% spike in Dogecoin’s value. In his performance on “Saturday Night Live” in 2021, Musk played a financial expert in a skit and called Dogecoin “a hustle.” Shortly after, the price of DOGE fell by more than 25% after reaching a historical high of $0.73.

In the ruling on August 29, US District Judge Alvin Hellerstein in Manhattan stated that Musk’s statements about Dogecoin were “aspirational and puffery, not factual” and were “susceptible to being falsified.” He added that no “no reasonable investor could rely upon them” for making investment decisions. He said“not possible to understand the allegations that form the basis” of these claims，and dismissed the lawsuit.

As for the meme coin cryptocurrency, its value is inherently based on topical hype. If the charges against Musk had been established, then too many celebrities, including the Trump family, might have to face lawsuits. So this result can probably be seen as a victory for Musk and others who stand for meme coins.

So, back to Dogecoin, will its price rise because of this victory? If you are interested in Dogecoin, you can contact us to learn about Dogecoin ASICs, after all, mining is essentially the only way to obtain cryptocurrencies at a low price. We are currently selling various models of Dogecoin ASICs, and the one with the highest theoretical return at present is the ANTMINER L9,  which can support the simultaneous mining of Dogecoin, Litecoin, and Bellcoin, as well as more ASIC models. Please feel free to contact us to get the most suitable mining solution for you!

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