Dogecoin lawsuit against Elon Musk dropped after summer surge drama
Dogecoin lawsuit against Elon Musk dropped after summer surge drama
A class-action lawsuit accusing billionaire Elon Musk of manipulating the price of Dogecoin has been officially dismissed, closing a high-profile legal chapter in the cryptocurrency space. The lawsuit, initiated by a group of Dogecoin investors, claimed that Musk's public statements and tweets artificially inflated the price of the memecoin, causing losses for some traders.
Filed in federal court in Manhattan, the case was dismissed on August 29, with final motions from both parties withdrawn in early November. U.S. District Judge Alvin Hellerstein noted in his ruling that Musk’s statements—such as promises to send Dogecoin “to the moon” via a SpaceX mission—were “aspirational and puffery,” not grounds for securities fraud litigation.
Dogecoin’s meteoric rise and Musk’s influence
The lawsuit stemmed from Dogecoin’s dramatic surge in the summer of 2021, when its price skyrocketed from under $0.10 to $0.70, largely influenced by Musk’s tweets and his appearance on *Saturday Night Live*. Investors alleged that Musk timed his public statements to manipulate the coin’s value, engaging in insider trading to profit from the price swings. However, Musk and Tesla denied owning wallets linked to suspicious trades and consistently stated they never sold Dogecoin.
Currently trading at $0.36, Dogecoin’s market cap has climbed to $53 billion, making it the sixth-largest cryptocurrency. Analysts attribute this surge to a broader bullish sentiment in the digital asset market and renewed attention on Dogecoin following Musk’s media coverage.
Dogecoin, created as a parody in 2013 by software engineers Billy Markus and Jackson Palmer, has evolved into a cryptocurrency powerhouse with a loyal community. Musk himself has embraced the coin’s humorous origins, stating, “I like Dogecoin because it has the best sense of humor—it’s dogs and memes, and I love those things.”
Looking ahead, Dogecoin’s trajectory will depend on broader market trends and community-driven projects. While the lawsuit’s dismissal brings legal clarity, Musk’s unpredictable influence on Dogecoin and other cryptocurrencies remains a wild card in the market’s volatile ecosystem.
Meanwhile, Dogecoin whales accumulate 140 million DOGE.
