A long-running legal battle involving Elon Musk and Dogecoin has finally reached its conclusion. Investors who accused Musk and Tesla of fraud and insider trading are dropping their appeal. They had challenged an earlier court ruling from August 29 that dismissed their case.
The investors also withdrew their request to penalize Musk’s lawyers. They had accused the lawyers of interfering with the appeal by demanding large legal fees.
On the other side, Musk and Tesla withdrew their motion to sanction the investors’ lawyer. They claimed the case was “frivolous” and filled with shifting legal arguments aimed at securing a quick payout.
Both sides filed a joint dismissal on Thursday night in a Manhattan federal court. This agreement still needs approval from U.S. District Judge Alvin Hellerstein.
Accusations and a Judge’s Ruling
The investors claimed Musk manipulated Dogecoin’s value using Twitter posts, a guest appearance on NBC’s Saturday Night Live, and other publicity stunts. They alleged he timed his Dogecoin trades to benefit from his public statements.
Judge Hellerstein dismissed the case, saying investors could not reasonably prove securities fraud based on Musk’s tweets. For example, one tweet called Dogecoin “the future currency of Earth,” while another joked about flying Dogecoin to the moon with SpaceX. The judge also dismissed claims of market manipulation and insider trading as unclear.
The lawsuit initially sought a staggering $258 billion in damages. Over two years, the complaint was revised four times before it was thrown out.
Elon Musk and the Bigger Picture
In 2022, Musk acquired Twitter, renaming it X. Investors argued his Dogecoin-related posts were part of a larger pattern of influencing the cryptocurrency market.
Although this lawsuit has ended, Musk remains a controversial figure in both the tech and financial worlds. His influence on cryptocurrencies and bold public statements continue to spark debates.
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