Elon Musk Beats Dogecoin Lawsuit: Judge Dismisses $258 Billion Claim

Elon Musk Beats Dogecoin Lawsuit: Judge Dismisses $258 Billion Claim

Elon Musk, founder of Tesla and owner of social media platform X (formerly Twitter), has successfully dismissed a lawsuit against him. The suit, filed by investors, accused Musk and Tesla of defrauding investors through the promotion and insider trading of Dogecoin.

Court Ruling

On Thursday, U.S. District Judge Alvin Hellerstein in Manhattan dismissed the lawsuit, providing relief to Musk and his company. Judge Hellerstein found that the investors' claims lacked merit.

Claims Dismissed

The lawsuit alleged that Musk used his influence, particularly on Twitter and during an appearance on NBC's "Saturday Night Live," to manipulate the price of Dogecoin. Investors claimed that Musk's actions caused the price of the cryptocurrency to rise by 36,000% over two years before crashing, resulting in significant financial losses.

Judge's Reasoning

Judge Hellerstein rejected the claims, stating that Musk's tweets about Dogecoin were mere aspirations rather than literal statements of intent. He further noted that no reasonable investor could rely on such tweets as a basis for security fraud allegations.

The judge also found the insider trading claims to be too vague, stating that the accusations were "not possible to understand."

Victory for Musk and Dogecoin

Alex Spiro, Musk's attorney, welcomed the dismissal as a "great day for Dogecoin." Musk's legal team asserted that his tweets were harmless and there was no evidence of wrongdoing related to Dogecoin trading.

Future Implications

Elon Musk has a history of making humorous tweets about various cryptocurrencies. However, this ruling clarifies that his tweets are not to be interpreted as investment advice. The dismissal clears Musk's name of any wrongdoing related to Dogecoin. The future of Dogecoin remains uncertain, and it is unclear how the ruling will impact its price.