Elon Musk is facing a class action lawsuit from Dogecoin investors for insider trading and price manipulation of the cryptocurrency that cost them billions of dollars.
The lawsuit alleges that Musk used various methods and publicity stunts, including the social network Twitter and television appearances, to artificially alter the price of the Dogecoin cryptocurrency to profit at the expense of investors.
In doing so, the businessman was accused of directly defrauding investors. Musk ensured profitable trading through multiple Dogecoin wallets controlled by him personally or by Tesla.
The plaintiffs claim that by taking such actions, Musk caused them significant financial losses and illegally enriched himself, according to Reuters.
Recall that recently, Elon Musk again became the richest man in the world.
Among the events that support this statement is Musk's sale of $ 124 million worth of Dogecoin tokens in April, which "accidentally" coincided with the replacement of the Twitter logo with the Dogecoin logo with a Shiba-inu dog, which led to a 30% jump in the price of the cryptocurrency.
According to the investors, Musk intentionally raised the price of Dogecoin by more than 36,000% in two years and then triggered its decline after replacing the Twitter logo. The document also alleges that Musk manipulated the bitcoin market when Tesla traded bitcoins.
The previous two investor lawsuits were appealed by Elon Musk's lawyers, but this third appeal led U.S. District Judge Alvin Hellerstein to say on Wednesday, May 31, that he would grant the third amended complaint.
Earlier, our portal reported that Baby Doge shared a provocative tweet about Ethereum.