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Elon Musk Accused of Insider Trading With Dogecoin

Elon Musk Accused of Insider Trading With Dogecoin

A group of dissatisfied individuals who hold Dogecoin (DOGE) are reportedly attempting to modify a class action lawsuit directed at Elon Musk.

Originally filed in June 2022, the class action lawsuit against the billionaire CEO of Twitter, Elon Musk, is now being expanded to include allegations of insider trading.

According to a report from Reuters, the investors claim that they suffered financial losses due to intentional actions taken by the CEO on Twitter to artificially increase the value of the popular meme-based cryptocurrency.

In the recent proposed third amendment, submitted to the Manhattan federal court on Wednesday, the investors accuse Musk of engaging in various tactics, such as using Twitter posts, collaborating with influencers, making an appearance on NBC’s “Saturday Night Live,” and performing other publicity stunts. They argue that these activities were undertaken to enable Musk to profit at the expense of other investors.

The filing also mentions an incident in April, when Musk sold approximately $124 million worth of Dogecoin after the token’s price surged by 30% following his decision to change Twitter’s blue bird icon to DOGE’s Shiba Inu dog logo.


READ MORE: Crypto Whales Stir Markets with Multi-Million Dollar BTC, ETH, DOGE, and XRP Moves


The lawsuit asserts that Musk’s actions, characterized as a “deliberate course of carnival barking, market manipulation, and insider trading,” allowed him to deceive investors while simultaneously promoting himself and his companies.

In response to the proposed amendment, U.S. District Judge Alvin Hellerstein stated that he is inclined to approve the third amended complaint, indicating that the defendants are unlikely to face unfair treatment.

Musk’s legal team attempted to dismiss the lawsuit in March, arguing that it is a work of fiction. They claimed that Musk’s statements about DOGE should not be viewed as genuine endorsements because they were too vague and frivolous.

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Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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