Tesla CEO Elon Musk has refuted claims of owning Dogecoin wallets implicated in insider trading. These allegations form the crux of an ongoing class-action lawsuit against Musk, accusing him of engaging in a racketeering scheme to bolster the meme-based cryptocurrency, Dogecoin.
According to court documents, two wallets suspected to be linked to Musk reportedly sold 1.4 billion Dogecoins, translating to over $124 million, within a two-day span in April. Alex Shapiro, Musk’s legal representative, has dismissed these allegations as baseless and lacking substantial evidence.
The lawsuit, revised by a consortium of Dogecoin investors, charges Musk with market manipulation and exploiting his considerable Twitter following to influence the market. Musk, often referred to as the “Dogefather” and “Dogecoin CEO,” is a vocal advocate of the meme coin. His frequent tweets about Dogecoin have significantly contributed to its popularity and market value.
Dogecoin, initially conceived as a joke in 2013, has since amassed a significant market capitalization of approximately $8.7 billion, making it the eighth-largest cryptocurrency. The lawsuit against Musk alleges manipulative practices in inflating the token’s price, citing his social media influence and his appearance on NBC’s Saturday Night Live. The court’s decision will ultimately determine the extent of Musk’s involvement with Dogecoin beyond his Twitter antics.
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