Elon Musk sued for manipulating Dogecoin price

The billionaire Elon Musk is facing a new lawsuit in Manhattan federal court. The Twitter CEO is accused of changing the Twitter logo to DOGE to drive up the price of memecoin and get rid of his $124 million in Doge. Investors affected by fluctuations in the token’s price also blame Elon Musk for influencing the cryptocurrency’s price through his media appearances.

Elon Musk accused of insider trading on Dogecoin

The boss of Twitter, Elon Musk,is once again in the spotlight. This time, it’s not the billionaire’s controversial positions that are in the news, but the legal troubles that await him. Indeed, the Twitter CEO is charged with insider trading in Manhattan federal court, reports Reuters.

The investors behind the complaint claim to have lost millions of dollars invested in the cryptocurrency Dogecoin. For them, the person responsible for this loss is none other than… Elon Musk.

According to the plaintiff investors, Elon Musk manipulated the price of Dogecoin (DOGE) for personal gain.

In particular, they claim thatin April 2023, Musk changed the icon of the Twitter social network to a dog, the symbol of Dogecoin. This change caused the Dogecoin crypto price to rise by over 30%..

Elon Musk then took the opportunity to get rid of the equivalent of $124 million worth of Dogecoin. The price of Dogecoin eventually fell back, resulting in massive losses for other investors.

The Tesla CEO is also implicated for his media outbursts on Dogecoin. In particular, the complaint alleges that the passage of Musk on the show Saturday Night Live on NBC and his other advertising appearances have led to fluctuations in the price of Dogecoin. Every time, Elon Musk took the opportunity to sell his Dogecoin by the millions at the expense of other investors.

Will Elon Musk let go of Dogecoin (DOGE)?

This isn’t the first time that Elon Musk finds himself under fire over his stance on Dogecoin. In June 2022, Elon Musk had been prosecuted by a Dogecoin investor claiming nearly $258 billion in damages. Keith Johnson reproached the billionaire for having boosted DOGE by more than 36,000% in two years before dropping it.

On the other hand, the current complaint comes in a slightly more peculiar context. Unlike 2021-2022, when Elon Musk has constantly presented himself as the father of Dogecoin, and the billionaire is currently making no secret of his concerns about the cryptocurrency.

At the Wall Street Journal’s CEO Council Summit in London on Tuesday May 23, Elon Musk has strongly discouraged investment in cryptocurrencies, particularly Dogecoin. Although the billionaire says he still has a preference for Dogecoin, publicly advises investors against it is a first. A few months ago, no one could have imagined it.

Could this complaint prompt Elon Musk has dropped Dogecoin for good ? No one knows exactly. What is known, however, is that Musk is no longer an unconditional supporter of Dogecoin as he once was. Dogecoin investors should therefore follow this saga very closely.