Dogecoin investors have accused Elon Musk of insider trading and manipulating the price of DOGE.
The investors have requested to amend the class action lawsuit filed against Musk last year to include the latest allegations.
The DOGE holders alleged that Musk used Twitter posts and his online influence to manipulate the meme token’s price.
Dogecoin investors have accused Elon Musk of insider trading and manipulating DOGE. In a proposed amendment to an ongoing class action lawsuit, investors of DOGE accused the billionaire businessman of costing them billions of dollars by using his influence to manipulate the price of the world’s largest meme token and profiting himself in the process.
Musk Accused Of Using Twitter To Manipulate Dogecoin
According to a report by Reuters, Dogecoin investors filed a request with the Manhattan Federal Court to amend the class action lawsuit that was initially filed against Elon Musk in June 2022. In what was the third amendment to the lawsuit, investors stated that the Twitter CEO used multiple Twitter posts, paid online influencers, and public appearances to manipulate DOGE’s price in order to trade profitably at their expense.
The investors included several instances of Musk’s alleged acts of manipulation, including his appearance on NBC’s Saturday Night Live in 2021 and showcasing Dogecoin’s Shiba Inu mascot on Twitter’s homepage last month. The filing alleged that Musk sold nearly $124 million worth of DOGE after it gained 30% thanks to its logo being displayed on Twitter.
This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk”
Court Filing by Dogecoin investors
U.S. District Judge Alvin Hellerstein reportedly said that he would “likely” allow the latest amended complaint, noting that the defendants would not likely be prejudiced. Elon Musk’s lawyer declined a request for comment by Reuters. A lawyer for Musk’s EV giant Tesla did not respond to a request for comment. Earlier this year, Musk and Tesla requested the court to dismiss the second amended complaint filed by the Dogecoin investors, describing it as a “fanciful work of fiction.”