Twitter and Tesla CEO Elon Musk have been accused of insider trading and manipulating the price of Dogecoin in a proposed class action lawsuit.
Investors claim that Musk used his influence on Twitter, TV and paid online influencers to trade profitably at the expense of other investors.
Elon Musk has been very vocal about Dogecoin over the years, which often leads to an increase in the price of Dogecoin. However, using his massive online influence to pump up Doge and then actually profiting from it, as the lawsuit claims, is another.
Wednesday night’s filing in Manhattan federal court claims that Musk sold about $124 million worth of Dogecoin after he replaced Twitter’s logo with Dogecoin’s logo in April, a 30 percent increase in Dogecoin’s price. ,
According to Phil, Musk went on a deliberate course of “carnival barking, market manipulation and insider trading” to defraud investors. Overall, the complaint claims that Musk intentionally inflated the price of Dogecoin by more than 36,000 percent over several years, and then crashed it.
This is the third amendment to the lawsuit against Musk originally filed last June. Musk is being sued for a total of $258 in damages. Musk’s lawyers, who have not yet commented on the new amendment, previously said the lawsuit was a “fictitious work of fiction”.
Dogecoin began as a joke, but has gained a devoted following over the years. It is currently the ninth largest cryptocurrency according to CoinGecko, with a market cap of just over $10 billion.