The Lawsuit Against Musk Alleges Manipulative Practices in Pumping the Token's Price

Tesla CEO Elon Musk has denied allegations of owning Dogecoin wallets connected to insider trading amid an ongoing class action lawsuit. The lawsuit accuses Musk of participating in a racketeering scheme to support the meme-based cryptocurrency. Court records claim that two wallets associated with Musk sold 1.4 billion Dogecoins, amounting to over $124 million, during a two-day period in April. However, Musk's attorney, Alex Shapiro, dismissed the claims, stating that they are baseless and lack evidence. The lawsuit, which has been amended by a group of DOGE investors, accuses Musk of market manipulation and taking advantage of his substantial Twitter following.

Elon Musk, known as the "Dogefather" and "Dogecoin CEO," has been an outspoken supporter of the meme coin, often sharing tweets about it. Dogecoin, initially created as a joke in 2013, has gained significant popularity and market value, currently ranking as the eight largest cryptocurrency with a market capitalization of around $8.7 billion. The lawsuit against Musk alleges manipulative practices in pumping the token's price, citing his influence on social media and his appearance on NBC's Saturday Night Live. The court will ultimately determine whether Musk's involvement with Dogecoin extends beyond trolling on Twitter.