A $258B lawsuit related to Dogecoin has been sought to be dismissed by billionaire businessman Elon Musk, which is a surprise development. Reports claim that investors who accused Elon Musk of running a pyramid scheme to market Dogecoin filed the lawsuit.
Would Doge Fail if Elon Musk Stops Promoting Dogecoin?
Investors who claimed that Elon Musk ran a pyramid scheme to promote the cryptocurrency Dogecoin have reportedly asked a judge in the United States to dismiss their $258 billion lawsuit against him (DOGE).
Elon Musk’s attorneys reportedly referred to the complaint filed by Dogecoin investors in Manhattan’s federal court on 31st March as a “fanciful work of fiction,” according to a Reuters article from April 1.
To persuade the judge to dismiss the $258 billion case, it was claimed that Musk’s attorneys referred to his Dogecoin comments as “innocent and frequently funny tweets.”
According to Musk’s attorneys, his claims about Dogecoin, such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” were “too ambiguous” to support a fraud allegation. The attorneys noted:
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”
To persuade the judge to “throw out” the multibillion-dollar lawsuit, Musk’s attorneys described his Dogecoin statements as “innocent and frequently funny tweets.”
In the initial lawsuit from last year, Musk was charged with inflating the price of Dogecoin by “more than 36,000% over 2 years and then allowing it crash,” and with “using his pedestal as the World’s Richest Man to manage and influence the Dogecoin Pyramid Scheme.”
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The Alleged Impact of Musk’s Price on Dogecoin
Investors allegedly made investment decisions in light of Elon Musk’s appearance on NBC’s “Saturday Night Live” during the “Weekend Update” segment. The value of DOGE dropped more than 25% within minutes of its television appearance, from a peak of $.66 at the start of the program to as low as $.50.
Following his television appearance, Musk made repeated attempts to revive interest in Dogecoin. A few days later, he tweeted to his fans to let them know that he was working with Doge experts to increase system effectiveness, which would be “possibly fruitful.”
Musk informed his Followers on Twitter that he will not sell his holdings in DOGE, Ether, and Bitcoin: during March 2022 market crash. The fall in Dogecoin’s market value over the thirteen months before the lawsuit filing is estimated at a third of the $258 billion losses projection.
The non-profit Dogecoin Foundation is another defendant who wants the case dismissed. According to an email from Evan Spencer, the investor’s attorney, “we are more convinced than before that our lawsuit will be successful.”
Elon Musk is accustomed to litigious proceedings and investment lawsuits. In response to Musk’s statements on Twitter which he controls, numerous lawsuits have been launched. For instance, a San Francisco jury ruled him not responsible on February 3 for tweeting in August in the year of 2018 that he had funds to take Tesla private.