Tesla CEO Elon Musk has become the world’s richest person again this week, ahead of LVMH CEO Bernard Arnault. Meanwhile, a large group of investors are suing Musk for allegedly manipulating the price of Dogecoin. Allegedly, Musk pocketed millions of dollars when he changed Twitter’s logo in April.
How much Elon Musk earned with Dogecoin reported in Insider trading lawsuit
A large group of investors filed a 3rd complaint against Elon Musk in Manhattan federal court on Wednesday. The complaint alleged that Musk sold approximately $124 million in Dogecoin after Twitter’s logo change led to a 30% price increase.
cryptocoin.com As we have reported, on the evening of April 3, Twitter suddenly changed its logo to Dogecoin’s. The big news helped the Dogecoin price pump 30% independent of the market overall.
The related manipulation case has been going on since June of last year. The plaintiffs allege that Musk used his social media posts, Saturday Night Live appearance, and Twitter to pump Dogecoin and sell it at a profit.
In the latest filing, Musk managed to defraud investors through “deliberately market manipulation and insider trading.” Tesla CEO accuses Dogecoin of increasing the price by over 36,000% in two years and allowing it to crash.
Elon Musk influence
The tech billionaire tweeted about Dogecoin 30 times on 22 different days from May to November 2021. On five of those days, the Dogecoin price rose more than 20%. The price had risen 32% when Musk said on May 20 that he did not and will not sell any DOGE. These rises faded at the same speed each time. On six separate occasions in the same timeframe, Dogecoin gained more than 5% per week after a Musk tweet.
At the end of 2022, the cryptocurrency market was in crisis. Still, Musk’s tweets managed to increase the DOGE price by an average of 5%. But its long-term effect was limited.
What will the court decide this time?
The third complaint, filed Wednesday, will “probably” be allowed, according to the U.S. district judge handling the case. Judge Alvin Hellerstein says the defendants are not biased. It also accepts investors’ request to remove the Dogecoin Foundation as a defendant.
In early April, Musk’s lawyers moved to dismiss the $258 billion lawsuit. To them, it was “a fictitious work of fiction.” However, it seems that the transactions are not going as Musk wanted. These recent changes, including Musk’s poor choice to change Twitter’s logo to the Doge mascot, add fuel to a growing list of accusations that are becoming increasingly difficult to ignore.
cryptocoin.comto the tweets Musk has posted since 2019.
