Elon Musk, the CEO of Tesla and SpaceX, has been a vocal supporter of Dogecoin, a cryptocurrency that started as a joke. However, his tweets promoting the meme coin have landed him in legal trouble, with a $258 billion lawsuit alleging that he ran a pyramid scheme to support Dogecoin. Musk’s lawyers are now seeking to get the lawsuit dismissed, arguing that it is fictitious and that his tweets supporting DOGE are not unlawful.
Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer as a parody of Bitcoin. However, it gained a cult following on social media, with celebrities like Elon Musk and Mark Cuban promoting it. Musk’s tweets have been particularly influential in driving up the price of DOGE. For instance, in May 2021, he tweeted, “Working with Doge devs to improve system transaction efficiency. Potentially promising.”
However, Musk’s tweets have also landed him in legal trouble. In July 2021, a lawsuit was filed against him in California, accusing him of using his influence to manipulate the price of Dogecoin and profiting from it. The lawsuit also alleged that he was running a pyramid scheme to promote DOGE. The plaintiffs in the case sought damages of $258 billion.
Elon Musk’s response
Elon Musk’s lawyers have now filed a motion seeking to dismiss the lawsuit. They argue that the plaintiffs’ allegations are fictitious and that Musk’s tweets supporting DOGE are protected by the First Amendment of the US Constitution, which guarantees freedom of speech.
In their motion, Musk’s lawyers state that “the First Amendment protects the rights of all individuals, including Mr. Musk, to express their opinions about financial matters, including cryptocurrency.” They also argue that the plaintiffs have failed to show any evidence that Musk engaged in any wrongdoing or that they suffered any harm as a result of his tweets.
Musk’s lawyers also point out that Dogecoin is not a security and is therefore not subject to the same laws and regulations as traditional investments. They argue that the lawsuit is an attempt by the plaintiffs to use the legal system to manipulate the market and enrich themselves at the expense of Musk and others who support DOGE.
Elon Musk’s lawyers have made a strong case for the dismissal of the $258 billion lawsuit alleging that the billionaire ran a pyramid scheme to promote Dogecoin. They argue that the lawsuit is fictitious and that Musk’s tweets supporting DOGE are protected by the First Amendment. While it remains to be seen how the court will rule on the motion to dismiss, the case highlights the legal risks associated with cryptocurrency and the need for clear regulations to govern this emerging market.