Elon Musk is being sued for insider trading of Dogecoin
Plaintiffs allege the billionaire sold $124 million worth of DOGE in April after the coin rose in value due to the replacement of Twitter's logo with an image of a shiba-inu dog
Elon Musk has been accused of insider trading Dogecoin (DOGE), Reuters reports. The plaintiffs, who had previously filed a class action lawsuit against the billionaire, have updated their allegations and claim that Musk manipulated the price of the meme cryptocurrency and it cost them "billions of dollars."
The complaint, filed May 31 in federal court in Manhattan, says Musk used Twitter posts, paid Internet agitators, his 2021 appearance on NBC's "Saturday Night Live" show, and other "publicity stunts" to profitably trade at their expense through several Dogecoin wallets that he or his Tesla company control.
"Buying after every hint." How Elon Musk is influencing cryptocurrency prices
Investors accuse the billionaire of deliberately inflating the price of Dogecoin by more than 36,000% in two years and then allowing it to collapse. This allowed Musk to defraud investors and promote himself and his companies, the statement said.
The documents allege that Musk sold Dogecoin for about $124 million in April after replacing the Twitter logo with a Dogecoin mascot in the form of a shiba-inu dog, causing Dogecoin's price to jump 30%.
Shortly thereafter, after reviewing transaction data and market indicators, Santiment analysts noted multiple signals that indicated that big players likely knew about the planned "pumping" of DOGE and were exiting the asset or at least locking in big profits.
New investor allegations were included in a June 2022 lawsuit filed against Musk, his companies SpaceX and Tesla, and the nonprofit Dogecoin Foundation for "creating a crypto pyramid" Dogecoin. In April, it became known that Musk had asked the court to dismiss the suit.
On May 24 at The Wall Street Journal conference in London, Musk said he was not encouraging anyone to invest in cryptocurrencies, not even his much-loved Dogecoin token.
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