The high-profile lawsuit accusing Elon Musk of manipulating Dogecoin’s price is approaching its conclusion. Investors have decided to withdraw their appeal against a previous dismissal ruling made on August 29. This legal battle has revolved around allegations that Musk, alongside his electric vehicle company Tesla, engaged in fraudulent activities and insider trading concerning the popular dog-themed cryptocurrency.
Both Parties Move To Dismiss Claims In Dogecoin Lawsuit
In recent court filings, the investors have also withdrawn their request to impose sanctions on Musk’s legal team. They claimed that the lawyers had interfered with the appeal process by demanding excessive legal fees. On the other hand, Musk and Tesla have retracted their motion to sanction the investors’ attorney, accusing them of pursuing a “frivolous” case filled with changing legal arguments aimed at extracting a swift settlement.
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A stipulation to dismiss the appeal, along with motions from both parties, was submitted to a federal court in Manhattan on Thursday evening. This document is now pending approval from US District Judge Alvin Hellerstein. As of Friday, neither Musk’s nor the investors’ legal representatives have provided responses or issued official statements regarding this development, leaving the public eagerly anticipating the court’s decision.
Court Finds No Grounds For Securities Fraud
The investors had accused Musk of exploiting social media platforms, including X (formerly known as Twitter) and his appearance on NBC’s “Saturday Night Live,” to allegedly manipulate Dogecoin’s value. They argued that Musk timed his trades to coincide with his public statements, thereby influencing the cryptocurrency’s price. However, in his ruling on August 29, Judge Hellerstein concluded that reasonable investors could not establish securities fraud solely based on Musk’s social media posts. These posts included claims that Dogecoin was set to become the “currency of the Earth” and could even be sent to the moon via SpaceX.
The judge further expressed confusion over the investors’ allegations of market manipulation and insider trading, suggesting that the claims lacked clarity and legal foundation. Initially, the investors sought a staggering $258 billion in damages, amending their complaint four times over two years. This extensive legal battle highlights the complexities and challenges of pursuing such cases in the rapidly evolving cryptocurrency market.
Dogecoin’s Market Performance and Future Prospects
At present, Dogecoin remains a significant player in the cryptocurrency market. It holds a market capitalization of $52 billion and is trading at $0.356. Despite the ongoing legal proceedings, Dogecoin has shown remarkable performance, ranking among the top ten digital assets in the industry. Over the past week, it posted gains of 83%, and over the last month, it achieved an impressive 190% increase.
This surge in Dogecoin’s value was partly driven by the news that Elon Musk would be leading the new Trump Department of Government Efficiency, humorously abbreviated as DOGE. Investors perceived this as a sign of continued support for the dog-themed cryptocurrency. However, despite the recent upswing, Dogecoin is still trading at 50% below its all-time high of $0.731, reached during the 2021 bull run. As the year progresses, there are high expectations for further gains in the final months, fueled by Musk’s influence and the cryptocurrency’s growing popularity.
