Tesla CEO and Twitter owner Elon Musk;has been;accused;of insider trading and crypto market manipulation in a $258B Dogecoin class-action suit.
In a court document filed in the U.S. District Court for the Southern District of New York, the plaintiffs requested to amend the lawsuit's scope for the third time to include new complaints.
In the amended complaint, Dogecoin (DOGE) investors have claimed that Musk was able to trade the popular;cryptocurrencyp;profitably with several Dogecoin wallets controlled by him or Tesla through his Twitter posts, payments to online influencers, and his appearance on Saturday Night Live in 2021.
- The amendment added the brief shift of;the Twitter logo;to the DOGE symbol in early April to these actions.
- The plaintiffs said Musk sold around $124M of DOGE in April after he shifted Twitter's blue bird logo to the Dogecoin icon, leading to a 30% increase in the popular cryptocurrency's value.
- The investors have also reiterated their claims that Dogecoin is a;security;subject to the standards of the U.S. Securities and Exchange Commission (SEC).
- Following the latest filing, U.S. District Judge Alvin Hellerstein said he would probably accept the third amended complaint.
The initial complaint was filed in June 2022, accusing Musk and his companies, including Tesla, SpaceX, and The Boring Company, of conducting a Ponzi scheme to support Dogecoin.
- The class-action lawsuit mainly claims that Musk deliberately caused Dogecoin's price to jump over 36,000% in two years before allowing it to plummet, seeking a $258B compensation.
- In April, Musk;requested the dismissal;of the $258B Dogecoin lawsuit, saying that the statements in his tweets were too vague to support fraud and that supporting a legal cryptocurrency with a $10B market cap through tweets or funny pictures is not unlawful.
- The famous;CEO;also;most recently said;he is not advising anyone to buy crypto or bet the farm on Dogecoin, contradicting his renowned commitment to the popular cryptocurrency.