The close relationship between Dogecoin and Elon Musk, a prominent figure in the cryptocurrency realm, is well-known to everyone. Musk has consistently demonstrated his affection and support for the first and largest meme coin through various means. However, this once-cherished connection has taken an unexpected turn as Dogecoin investors file a lawsuit accusing Musk of engaging in insider trading.
Dogecoin started as a meme and rose remarkably with Musk’s influential support. His tweets, Twitter acquisition, and logo change contributed to DOGE’s price surge.
Nevertheless, Musk has faced backlash from investors in the form of legal action. Previously, the Tesla CEO sought the dismissal of a $238 billion lawsuit that claimed he artificially inflated the price of Dogecoin. Now, a new development has unfolded, with Musk being confronted with allegations of insider trading in a class action lawsuit brought forth by DOGE investors.
As outlined in the lawsuit filed in Manhattan federal court, the DOGE investors accuse Musk of engaging in insider trading practices. The allegations encompass the utilization of paid online influencers, Musk’s Twitter posts, his appearance on NBC’s “Saturday Night Live” in 2021, and other actions. The lawsuit further claims that Musk’s actions facilitated profits for both Tesla and himself through various wallets holding DOGE.
On May 15, 2023, we published an article titled “The Rise and Fall of $PEPE Coin: A Meme Coin Created by Binance CZ and Elon Musk ) The creation of $PEPE coin by Binance CZ and Elon Musk was primarily seen as an attempt to manipulate the market and generate quick profits. While many individuals were captivated by the meme-driven excitement, it is always prudent to assess the genuine utility and potential of the underlying project before investing your hard-earned money.
The legal filing states:
“Musk’s deliberate course of carnival barking, market manipulation, and insider trading has enabled him to defraud investors while promoting himself and his companies.”
Additionally, the investors have raised concerns over Elon Musk’s sale of $124 million worth of Dogecoin at the time when he replaced the Twitter logo with that of DOGE. This move by Musk triggered a substantial increase in the value of Dogecoin.