258B – Coin Network News https://coinnetworknews.com If it's coin, it's news. Sun, 02 Apr 2023 00:54:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 Elon Musk Asks Judge to Dismiss $258B Dogecoin Lawsuit — Insists Tweeting Support for DOGE Isn’t Unlawful – Featured Bitcoin News https://coinnetworknews.com/elon-musk-asks-judge-to-dismiss-258b-dogecoin-lawsuit-insists-tweeting-support-for-doge-isnt-unlawful-featured-bitcoin-news/ https://coinnetworknews.com/elon-musk-asks-judge-to-dismiss-258b-dogecoin-lawsuit-insists-tweeting-support-for-doge-isnt-unlawful-featured-bitcoin-news/#respond Sun, 02 Apr 2023 00:54:42 +0000 https://coinnetworknews.com/elon-musk-asks-judge-to-dismiss-258b-dogecoin-lawsuit-insists-tweeting-support-for-doge-isnt-unlawful-featured-bitcoin-news/

Tesla and Twitter CEO Elon Musk has asked a U.S. judge to dismiss a $258 billion lawsuit filed against him by dogecoin investors. They alleged that the billionaire operated a pyramid scheme to promote the meme cryptocurrency dogecoin. “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,” Musk’s lawyer argued.

Elon Musk Wants Court to Dismiss Lawsuit by Dogecoin Investors

Elon Musk, CEO of Tesla and Twitter, asked a U.S. judge on Friday to dismiss a $258 billion lawsuit alleging that he operated a pyramid scheme to promote the meme cryptocurrency dogecoin (DOGE). The lawsuit, Johnson et al v. Musk et al, filed in the U.S. District Court for the Southern District of New York, alleges that Musk and his companies, Tesla and Spacex, “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”

In a formal request filed Friday, Musk’s legal team described the lawsuit brought by dogecoin investors as a “fanciful work of fiction” concerning Musk’s “innocuous and often silly tweets” about the meme cryptocurrency. They argued that the investors failed to clarify how Musk intended to defraud anyone or what risks he concealed. They also argued that the Tesla CEO’s comments — such as “Dogecoin Rulz” and “no highs, no lows, only Doge” — were too ambiguous to support a fraud allegation.

Musk’s lawyers detailed:

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 … This court should put a stop to plaintiffs’ fantasy and dismiss the complaint.

Musk’s legal team also disputed the DOGE investors’ assertion that dogecoin met the criteria to be classified as a security. While the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has said in a few interviews that all crypto tokens, except bitcoin, are securities, many people have argued that his opinion is not the law.

Nonetheless, Evan Spencer, the lawyer representing the dogecoin investors, stated in an email: “We are more confident than ever that our case will be successful.”

According to the investors, Musk intentionally drove up the value of dogecoin by over 36,000% over two years, only to subsequently let it crash. They claimed that this resulted in billions of dollars in profits for Musk while other dogecoin investors suffered, despite Musk being aware that the meme cryptocurrency lacked any intrinsic value. Additionally, the investors cited Musk’s appearance on Saturday Night Live, where he portrayed a fictional financial expert and referred to dogecoin as “a hustle.”

Despite the lawsuit, the Tesla and Twitter boss confirmed that he will continue to buy and support DOGE. Musk is known in the dogecoin community as the Dogefather. His electric car company, Tesla, accepts the meme crypto for some merchandise, and earlier this year, he reaffirmed that he will eat a McDonald’s Happy Meal on TV if the fast food chain accepts payments in dogecoin.

Do you think the judge should dismiss the lawsuit against Elon Musk by dogecoin investors? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




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Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report https://coinnetworknews.com/elon-musk-requests-dismissal-of-258b-dogecoin-lawsuit-report/ https://coinnetworknews.com/elon-musk-requests-dismissal-of-258b-dogecoin-lawsuit-report/#respond Sat, 01 Apr 2023 05:20:27 +0000 https://coinnetworknews.com/elon-musk-requests-dismissal-of-258b-dogecoin-lawsuit-report/

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 referred to the lawsuit filed by Dogecoin investors, a “fanciful work of fiction,” in Manhattan’s federal court on March 31.

It was reported that 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 comment – 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.”

Investors cited Musk’s Saturday Night Live appearance where he portrayed “a fictitious financial expert,” and called Dogecoin “a hustle,” as a reference point in the lawsuit.

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.”

This is a developing story, and further information will be added as it becomes available.