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Elon Musk asked a US judge on Friday to bring up a $258 billion auction lawsuit accusing him of running a pyramid scheme to support the Dogecoin cryptocurrency.
In an evening filed in Manhattan federal court, attorneys for Musk and his electric car company Tesla Inc called the Dogecoin investors’ lawsuit a “work of fiction” about “innocent tweets” Innocent and often silly rewards” by Musk about Dogecoin.
The lawyers said investors never explained how Musk intended to scam anyone or the risks he was hiding, and his statements like “Dogecoin Rulz” and “no high, no” low, only Doge” is too vague to support a deceptive claim.
“There is nothing illegal about posting supportive tweets or hilarious photos of a legitimate cryptocurrency that continues to hold a market cap near 10,” Musk’s lawyers said. billion USD”. “This court should put an end to the plaintiff’s fantasies and dismiss the claim.”
In a footnote, the lawyers also refuted investors’ claims that Dogecoin qualifies as a security.
“We are more confident than ever that our case will be successful,” said attorney for the investors, Evan Spencer.
Investors accused Musk, the world’s second-richest person according to Forbes, of intentionally pushing the price of Dogecoin to more than 36,000% in two years and then letting it crash.
They say this has generated billions of dollars in profits at the expense of other Dogecoin investors, even as Musk knows the coin lacks intrinsic value.
Investors also pointed to Musk’s appearance in the “Weekend Updates” segment of NBC’s “Saturday Night Live,” which depicts a fictional financial expert, who he calls Dogecoin “a bribe.” Huh”.
The $258 billion loss figure is more than three times the estimated drop in market value of Dogecoin in the 13 months before the lawsuit was filed.
The Dogecoin Foundation, a non-profit organization, is also the defendant and is seeking to drop the lawsuit.
Musk’s posts on Twitter owned by him have led to numerous lawsuits.
He won a court victory on February 3 when a jury in San Francisco declared him not liable for tweeting in August 2018 that he had made financial arrangements to privatize Tesla.
Lawsuits Johnson et al. Musk et al., United States District Court, Southern District of New York, No. 22-05037.
