Elon Musk Secures Dismissal of Dogecoin Trading Lawsuit, DOGE Price Set for Potential Rally?

Elon Musk, CEO of Tesla, has successfully achieved the dismissal of a federal lawsuit that accused him and Tesla of manipulating Dogecoin’s price for personal gain. The decision, handed down by a U.S. District Judge in Manhattan, represents a significant victory for Musk and raises questions about the future trajectory of Dogecoin’s price.

Elon Musk Prevails in Dogecoin Lawsuit

According to a report from Reuters, the lawsuit was filed in Manhattan federal court, alleging that Musk and Tesla engaged in deceptive practices to inflate Dogecoin’s price, only to let it crash afterward.

Investors claimed that Musk used social media posts, television appearances, and other publicity stunts to boost the cryptocurrency’s value by over 36,000%. They further accused him of selling Dogecoin at its peak after orchestrating these market movements.

However, U.S. District Judge Alvin Hellerstein dismissed the lawsuit, citing the investors’ inability to substantiate their claims over two years and five different versions of the complaint. Musk’s legal team successfully argued that there was no concrete evidence linking him or Tesla to the wallets involved in the alleged trading activities. Furthermore, they contended that the accusations of misconduct in connection with Dogecoin were unfounded.

Allegations of Insider Trading and Market Manipulation

The lawsuit also detailed how Musk allegedly manipulated Dogecoin’s market value through various high-profile actions. Among these was his 2021 appearance on NBC’s “Saturday Night Live,” where he jokingly referred to Dogecoin as a “hustle” while portraying a fictional financial expert.

The plaintiffs argued that such actions were part of a broader scheme to profit from the cryptocurrency’s volatility by buying it before these public stunts and selling it after the price surged.

Investors also highlighted an incident in April 2023, when Musk temporarily replaced the Twitter logo with Dogecoin’s Shiba Inu dog, leading to a 30% increase in the cryptocurrency’s price. They claimed that this move allowed Musk to sell Dogecoin at an inflated price.

However, the judge ruled that the plaintiffs failed to provide sufficient evidence that these activities amounted to fraud or that Musk’s statements on social media were intended to deceive investors.

Musk’s defense team maintained that his tweets and public statements were often lighthearted and did not constitute a calculated effort to manipulate the market. They further argued that the plaintiffs could not establish any direct link between Musk’s social media activity and specific trading outcomes that would qualify as insider trading. As a result, the court ruled in favor of Musk, concluding that there was no evidence of illegal profit or wrongdoing.

DOGE Price Outlook and X Headquarters Closure

In related news, X, formerly known as Twitter and also owned by Musk, announced the closure of its San Francisco headquarters, effective September 13. This move adds to what has been an eventful week for Musk, following the dismissal of the Dogecoin lawsuit.

Meanwhile, the price of Dogecoin has seen a slight recovery, trading at $0.1006, with a 0.45% increase from its support level. According to crypto analyst Trader Tardigrade, Dogecoin may have reached the peak of its bearish momentum, suggesting a potential bullish breakout.

Make money without lifting your fingers: Start using a world-class auto trading solution.

LonghornFX, your trusted Partner in CFDs, Cryptocurrencies and Stocks.