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Elon Musk Faces Accusations of Insider Trading in Dogecoin Lawsuit
Elon Musk, the renowned CEO of Tesla Inc (TSLA.O), is currently embroiled in a proposed class action lawsuit, as investors accuse him of insider trading and manipulating the popular cryptocurrency Dogecoin. The investors claim that Musk’s actions, including his Twitter posts, engagement with online influencers, appearance on NBC’s “Saturday Night Live,” and other publicity stunts, were all designed to profit at their expense. In this article, we delve into the details of the lawsuit, exploring the allegations made against Musk and the impact they have had on the investors.
Insider Trading Allegations
According to a filing made in Manhattan federal court, investors claim that Elon Musk engaged in a deliberate course of market manipulation and insider trading to defraud them. They argue that Musk took advantage of his influential position to promote himself, his companies, and profit from Dogecoin. The allegations point to Musk’s tweets and actions, such as replacing Twitter’s blue bird logo with Dogecoin’s Shiba Inu dog logo, which resulted in a significant surge in Dogecoin’s price. In April, Musk reportedly sold around $124 million worth of Dogecoin, further exacerbating the investors’ losses.
