The plaintiffs point to a series of tweets by Musk about Dogecoin, but his lawyers argue that these were often just “harmless and silly” and “not at all unlawful.” Meanwhile, Evan Spencer, the attorney for the plaintiff side, is “more confident than ever that our case will succeed.”
Elon Musk and his lawyers have requested that a $258 billion lawsuit be dropped, which scolded investors accusing the Tesla CEO of promoting fraudulent pyramid schemes with his advocacy of the cryptocurrency Dogecoin.
Musk‘s lawyers argue that the lawsuit filed by Dogecoin investors back in June 2022 is a “blooming fantasy.” To that end, the lawyers state that Musk‘s advocacy for Dogecoin on social media via comments such as “Dogecoin Rulz” or “no highs, no lows, only Doge” is far too vague to construct a serious fraud attempt indeed.
Further, the lawyers describe their client’s statements about Dogecoin as “harmless and often silly tweets, ” which is why discontinuing the billion-dollar lawsuit is logical.
The plaintiff side, in turn, accuses the Tesla CEO of driving the Dogecoin price up “by more than 36,000% over two years through his posts and then letting it crash.” In this context, Musk allegedly used his “exposed position as the richest man in the world to operate and manipulate the Dogecoin pyramid scheme.”
Musk‘s appearance on the famous American sketch show Saturday Night Live (SNL) in May 2021 is also mentioned in the statement of claim because here the wealthy entrepreneur had mimed “a fictitious financial expert”, who then, however, suddenly called DOGE a “hoax.” The Dogecoin price immediately collapsed by more than 25% from 0.66 to only 0.50 US dollars.
During the crypto market crisis in March 2022, Musk again stressed that he would keep his crypto assets in the form of Bitcoin, and DOGE does not want to divest.