Key Points

  • Twitter CEO Elon Musk has been sued for Dogecoin market manipulation
  • The lawsuit says that Musk willingly used Dogecoin as the Twitter logo to drive its market numbers
  • It’s not the first time that Musk has been served regarding Dogecoin Market manipulation claims
  • The crypto community reacts to the story

Elon Musk is petting his favourite dog meme-coin to much-concerned parties

Twitter’s outgoing CEO Elon Musk has been sued regarding Dogecoin market manipulation. Some Dogecoin investors believe that Musk has been saying and taking some actions to drive the prices of Dogecoin for his gain.

According to an amended class action lawsuit, the tech billionaire allegedly engaged in insider trading and carnival-like market manipulation that hurt investors. The lawsuit highlights that Musk has repeatedly praised the coin, which ended up pumping and dumping very hard, at times affecting the investments of many unaware customers while profiting from the ensuing chaos.

The lawsuit highlighted a recent encounter where Elon Musk replaced the Twitter logo with the Doge dog breed meme to drive the price of Dogecoin high. The investors behind the lawsuit believe that Dogecoin is a security under SEC and seek to establish it to further their claims that Musk played the market with insider knowledge.

The initial complaint was first filed in June 2022, but Musk’s recent takeover of Twitter slowed things down, only to create a bigger tension in the Dogecoin Market.

Not the first time Musk has been under fire for endorsing Dogecoin

Elon Musk has been under criticism on several accounts for supporting a meme coin like DOgecoin and being public about it. Whenever Musk mentioned the coin in 2021 and 2022, its value skyrocketed until he was forced to say that he liked its fundamentals and even allowed Tesla to accept Bitcoin trading with its products.

Elon Musk was later sued for around $258B for praising DOgecoin and driving its prices up for his gain as he is an active holder of the coin. He, however, moved to quash the lawsuit claiming that it has no basis.

Crypto community reacts

The crypto community has come out to express their reactions regarding Elon Musk’s actions with DOgecoin and the lawsuit that came as a result. Some have hit out at the complainants, saying it’s possibly the Dogecoin short sellers who are crying foul.

Others have defended him, saying that he has the right to post any meme that he sees fit, be it doge dog breed related or not. One user even said that the purpose behind the coin is having fun, meaning Musk should be let have his own.

Others hilariously tweeted that they would love to sue their neighbours for ‘false’ advertisement as a pun to mock the lawsuit against Musk.

Keep watching Fintech Express for updates on this and other fintech-related news.