Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

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Elon Musk and his lawyers reportedly requested a United States judge to dismiss the $258 billion lawsuit filed by investors who alleged that he operated a pyramid scheme to promote the cryptocurrency Dogecoin (DOGE).

According to an April 1 Reuters report, Elon Musk’s lawyers stated in Manhattan’s federal court on March 31, the lawsuit against Musk – filed by Dogecoin investors in June 2022 – is a “fanciful work of fiction.” 

Musk was accused of driving up Dogecoin’s price “more than 36,000% over two years and then letting it crash,” with the class-action lawsuit alleging in the initial hearing last year that he “used his pedestal as World’s richest man to operate and manipulate the Dogecoin Pyramid Scheme.”

Musk’s lawyers referred to his Dogecoin statements as “innocuous and often silly tweets,” in an effort to convince the judge to “throw out” the multi-billion dollar lawsuit.

Related: Elon Musk slams ‘heavy-handed’ Fed as ex-BitMEX CEO sees $1M BTC price

Musk’s lawyers explained that his Dogecoin-related comments – including “Dogecoin Rulz” and “no highs, no lows, only Doge” – were “too vague” to warrant a fraud claim. The lawyers noted:

“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”

The investors cited Musk’s Saturday Night Live (SNL) appearance, in May 2021, where he portrayed “a fictitious financial expert,” and called Dogecoin “a hustle,” as a reference point in the lawsuit.

Minutes after his SNL appearance, the price of DOGE dumped more than 25%, falling as low as $.50 from $.66 highs at the start of the show.

Musk appeared to make numerous efforts to reignite people’s enthusiasm for Dogecoin following his television appearance.

He told his Twitter followers just days after that he is working with “Doge devs to improve system efficiency,” and that it could be “potentially promising.”

During the market crash in March 2022, Musk told his Twitter followers that he would not sell his crypto holdings including Bitcoin (BTC), Ethereum (ETH), or DOGE.

The lawyer representing the investors, Evan Spencer, reportedly stated in an email that “we are more confident than ever that our case will be successful.”

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