Elon Musk Lawsuit Over Dogecoin Manipulation Comes to an End

Key Points:

• Investors have withdrawn their appeal and motions in the Elon Musk lawsuit alleging Dogecoin manipulation and fraud.
• A Manhattan federal judge dismissed claims that Musk's tweets and public appearances manipulated Dogecoin's market.

According to Reuters, the lawsuit filed against billionaire entrepreneur Elon Musk, accusing him of manipulating Dogecoin, has been settled.

Investors Drop Appeal in Elon Musk Lawsuit Over Dogecoin Manipulation

Investors who alleged that Musk and Tesla engaged in fraud and insider trading have filed to drop their appeal of an August 29 dismissal of the case. They are also dropping a motion seeking to sanction Musk's attorneys for allegedly obstructing the appeal by demanding millions of dollars in legal fees.

Musk and Tesla have, in turn, withdrawn their offer to penalize the investors' attorney for filing what they described as a "frivolous" case constructed on shifting legal arguments solely to extract money.

On Thursday, a stipulation to dismiss the appeal and motions from both parties was submitted to a federal court in Manhattan. The agreement concludes the Elon Musk lawsuit, subject to approval by U.S. District Judge Alvin Hellerstein.

The investors initially accused Musk of using public statements, including on Twitter, as a guest on NBC's Saturday Night Live, and other publicity stunts to manipulate the value of Dogecoin. They asserted that these actions aimed to profit from his trades at their expense. Despite revising the lawsuit four times over two years and claiming damages of $258 billion, their claims have been unsuccessful.

Dogecoin Surges Amid Legal Dispute Over Musk's Public Influence

Judge Hellerstein's dismissal ruled that Musk's tweets apparently touting Dogecoin as "the future currency of Earth" and implying it would be integrated into SpaceX's operations could not substantiate securities fraud. He further argued that these claims, without supporting evidence, constituted market manipulation and insider trading.

Dogecoin, the cryptocurrency closely associated with Musk, experienced a meteoric rise last year, driven by celebrity endorsements and social media hype. Its market valuation has surged to $52 billion as of this writing. However, Musk's involvement in the cryptocurrency has been highly controversial.