- Investors accuse Musk of manipulating the price of the Dogecoin coin
- They claim the businessman used publicity stunts to profitably trade
- Ilon’s lawyers declined to comment
Ilon Musk has been the subject of internal trading allegations in a class action suit filed by investors. They accuse the CEO of Tesla and Twitter of manipulating the price of the DOGE token, resulting in losses in the billions.
In their filing in federal court in Manhattan on the evening of May 31, investors noted that Elon Musk used various methods to profit from trading. It’s about Twitter posts and his participation in NBC’s “Saturday Night Live” show in 2021. It is noted that the billionaire carried out such actions using several Dogecoin wallets controlled by him or Tesla.
According to investors, Elon Musk sold approximately $124 million in Dogecoin cryptocurrency in April. This sale came after Musk changed his Twitter logo from a blue bird to the Dogecoin logo in the shape of a Shiba Inu dog. This change led to a 30% increase in the coin’s price.
Investors accuse Ilon Musk of deliberately increasing the price of the Dogecoin cryptocurrency by more than 36,000% over two years and then allowing it to plummet.. The allegations were included in a “proposed third amended complaint” in a lawsuit that began last June.
In March, Musk and Tesla sought to dismiss the second amended complaint, calling it “fantasy fiction,” and on May 26 said another amendment was unwarranted.
On Wednesday, May 31, U.S. District Judge Alvin Gellerstein said he would likely allow the third amended complaint, believing it would not prejudice the defendants.
A lawyer for Ilon Musk and part-time Tesla attorney Alex Spiro declined to comment Thursday.