Investors Sue and Claim Musk Used His Influence to Change the Price of Cryptocurrency and Make Profits, Which is Insider Trading
Elon Musk is a big fan of cryptocurrencies. Sometimes a comment from you is enough to cause a quote to plummet or skyrocket. One of these episodes, however, can turn into a headache for the billionaire. Investors are suing Tesla boss for allegedly manipulating the price of Dogecoin.
The class action lawsuit was filed Wednesday in federal court in Manhattan. Investors say Musk sold $124 million worth of Dogecoin in April after he replaced the blue bird logo on his Twitter homepage with the shiba inu dog that symbolizes Dogecoin.
This, according to the group, would have resulted in a 30% increase in the price of the cryptocurrency. That wasn’t the only conduct Musk identified as fraudulent, however.
The lawsuit also mentions tweets, paying influencers, his participation in the comedy show Saturday Night Live in 2021 and other publicity actions.
Twitter logo turned doge 2 days after April Fool’s Day 🙃 pic.twitter.com/8yETRJjAnw
— Tom Warren (@tomwarren) April 3, 2023
Investors believe these actions were taken by the billionaire to make a profit trading Dogecoin, both himself and Tesla.
This would be insider trading, the name given to when a person uses inside information to make a profit by trading financial assets.
Musk has also been accused of extortion involving Dogecoin. Investors claimed he was running a cryptocurrency pyramid scheme,
Musk was sued over Tesla tweets
This isn’t the first time Musk has had legal trouble involving his tweets and the financial market.
He was accused of defrauding Tesla shareholders for claiming he would take the company private, paying $420 a share, in 2018.
The purchase of the newspapers could cost $72 billion, but it never materialized, despite Musk saying funding was secured.
The billionaire won this case and did not have to pay the compensation desired by the shareholders.
On the other hand, the SEC, the body that supervises the US financial market, has not forgiven Musk. He deemed the tweet a lie, fined him $20 million, and forced the billionaire to step down as chairman of the Tesla board of directors.
With information: Reuters, Yahoo! Finance
Elon Musk accused of manipulating the price of Dogecoin by changing the Twitter logo
Source: Terra
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