Thursday, March 28, 2024

Tesla and Twitter CEO Elon Musk asked a judge in the U.S. to dismiss a lawsuit against him because investors thought he was running a “pyramid scheme” to make money off dogecoin, which is a cryptocurrency. However, his lawyer argued that it wasn’t illegal to tweet words of support or funny pictures about dogecoin since it still has an important market cap (worth) of over $10 billion.

The Dogefather Defends Himself

Elon Musk, who is the CEO of Tesla and Twitter, asked a judge in the USA on Friday to stop a $258 billion lawsuit which stated that Elon was using dogecoin (DOGE) cryptocurrency as part of a pyramid scheme. The lawsuit filed in New York claimed that Elon and his companies (Tesla and Spacex) said that dogecoin was an important investment even though it didn’t have any value.

Musk’s lawyers said that the lawsuit filed by investors of Dogecoin was made up and they claimed it was because of Musk’s tweets which sounded odd but didn’t mean anything bad. They explained that Musk’s tweets, such as “Dogecoin Rulz” and “no highs, no lows, only Doge”, were so vague and unclear that it couldn’t prove he meant to trick or mislead anyone.

Musk’s lawyers said that it is okay for him to post things on social media about a type of money called cryptocurrency because it has a value of nearly $10 billion. They asked the court to stop what the people suing Musk are hoping for and get rid of their complaint.

Musk’s lawyers said that dogecoin does not fit the definition of a security. Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), thinks that all cryptocurrencies, except for bitcoin, are securities but many people disagree with this opinion.

Evan Spencer, the lawyer helping the dogecoin investors, said in an email that he believes their case will work out and be successful.

Some investors say that Elon Musk purposely caused the value of dogecoin to go up by way more than 36,000% over two years and then let it go back down. They think this earned him lots of money while other people invested in dogecoin lost a lot, even though he knew the Investment didn’t really have any actual worth or value. Furthermore, on SNL (Saturday Night Live) show he pretended to be a Investing expert and joked about dogecoin calling it ‘a hustle’.

Despite the lawsuit, Elon Musk said that he will still purchase and support Dogecoin (a type of cryptocurrency). People in the dogecoin community have nicknamed him as “The Dogefather”! You can use Dogecoin to pay for some products from his company Tesla. He has also promised to eat a McDonald’s Happy Meal on TV if they accept Dogecoin as payment.

Do you think the judge should throw out the case against Elon Musk brought by dogecoin investors? Let us know what you think in the comments section below.

Picture Credit: Shutterstock, Pixabay, Wiki Commons

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