Musk’s legal team argued that he did not break any rules by tweeting his support.
The attorneys dismissed the investors’ allegation that Dogecoin was security in a footnote.
A $258 billion racketeering lawsuit alleging Elon Musk of creating a pyramid scheme to promote the cryptocurrency Dogecoin was filed against him on March 31. Musk urged a U.S. court to dismiss the case.
Lawyers for Musk and his electric vehicle firm Tesla Inc. filed a motion in federal court in Manhattan on Monday night, calling the action brought by investors in Dogecoin a “fanciful work of fiction” because of Mr. Musk’s “innocuous and often silly tweets” concerning Dogecoin.
No Rules Broken Claim
The attorneys said that Mr. Musk’s remarks, such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” were too nebulous to sustain a fraud allegation, and that the investors never stated how Mr. Musk meant to deceive anybody or what dangers he hid. Musk’s legal team argued that he did not break any rules by tweeting his support for a cryptocurrency that has a market valuation of roughly $10 billion.
The attorneys dismissed the investors’ allegation that Dogecoin was a security in a footnote. Legal counsel for the investors, Evan Spencer, expressed optimism about the case’s outcome in an email. Forbes’s number two wealthiest person, Elon Musk, has been accused by investors of intentionally inflating the value of Dogecoin by more than 36,000% in two years before letting it fall.
They said Mr. Musk made billions of dollars by taking advantage of those who had invested in Dogecoin despite the fact that he knew the currency was worthless. Investors also cited Musk’s portrayal of a bogus financial expert who dubbed Dogecoin “a hustle” on NBC’s “Saturday Night Live” “Weekend Update” episode.