Elon Musk Accused of Dogecoin Insider Trading Offences by Aggrieved Investors
As of the time of this writing, neither Musk nor his legal team has commented on the amended lawsuit from the Dogecoin investors.
A group of Dogecoin (DOGE) investors with a longstanding class-action lawsuit against Twitter’s outgoing Chief Executive Officer Elon Musk for alleged insider trading offenses. The investors, according to a recent filing, have requested a leave to amend their current lawsuit to show that the world’s richest man manipulated the price of DOGE.
The investors are particularly specific about the move by the billionaire when he changed Twitter’s logo to that of the memecoin back in early April. The aggrieved investors believed that Elon Musk used this event as an “undisguised course of cryptocurrency market manipulation”.
“This is a securities fraud class action arising from a deliberate course of carnival barking market manipulation and insider trading by the world’s richest man Elon Musk, who hijacked an emergent pop-culture phenomenon to cross-promote himself and his companies, and to pad his obscene fortune, preying on the earnest hopes of vulnerable Americans, including war veterans, blue collar workers, and the elderly,” the amended lawsuit.
Elon Musk is known for his bold and affirmative support for Dogecoin with a series of posts and memes always intriguing the memecoin’s community. It is not uncommon for Elon Musk to be vocal about any crypto or stock he has interest in and any tweet from the investor is often considered a buy signal by his more than 141.8 million followers on Twitter.
The class action lawsuit was first filed back in June last year and the investors have amended the complaint more than once. One of the prior claims of the investors was that Musk manipulated the DOGE token which according to the standards of the United States Securities and Exchange Commission (SEC) is an unregistered security.
The request for leave to amend the lawsuit was filed on May 31 in the US District Court for the Southern District of New York.
Elon Musk and the Future of Dogecoin
Elon Musk has handled the affairs of Twitter as the CEO since acquiring the company and a few weeks back, he revealed he is stepping down from the role and will be handing over to Linda Yaccarino, NBCUniversal’s former chair of global advertising and partnerships.
The ongoing speculation on crypto Twitter now is what the future of Dogecoin will be when Elon Musk steps down as CEO. With all eyes on Linda Yaccarino, she has proven to be a budding fan of the memecoin ecosystem after following a number of dedicated accounts including that of Dogecoin and Shiba Inu (SHIB).
While the mega publicity for the memecoin such as the changing of the Twitter logo to that of Dogecoin may be non-existent under Linda, other key initiatives bordering on the integration of the tokens as means of payment in Twitter 2.0 may still be possible.
As of the time of this writing, neither Musk nor his legal team has commented on the amended lawsuit from the Dogecoin investors.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
