Dogecoin Investors Charge Elon Musk for Insider Trading

The modified suit stated, ‘'This is a fraudulent securities class action arising from a deliberate course of behavior barking price manipulation and insider trading."

Investors in Dogecoin have asked for permission to amend a class action complaint they have filed against Elon Musk, the soon-to-be-former CEO of Twitter, alleging market manipulation of the joke cryptocurrency.

Source: www.euronews.com

The investors said in a May 31 lawsuit in the United States District Court for the Southern District of New York that Musk engaged in an undisguised course of cryptocurrency manipulation, using his Twitter following and media appearances to profit from DOGE trades.

The case claims that Musk made money from DOGE trading at the cost of other investors by driving up the price of the token by, for example, converting Twitter's logo to the Dogecoin logo. Prior to Musk's purchase of Twitter but after his first interest in promoting DOGE on the social media network, the investors initially complained in June 2022; however, they have since revised the complaint at least thrice in response to his actions. They asked the court for permission to alter their lawsuit, arguing that Musk was guilty of insider trading in DOGE and that the token qualified as a security under the rules of the U.S. Securities and Exchange Commission.

The amended lawsuit stated, "Elon Musk, the richest man in the world, intentionally engaged in a course of insider trading and market manipulation, which resulted in this collective action fraud on securities," a man who preyed on the sincere hopes of gullible Americans like veterans, blue collar workers, and older people in order to promote himself and his enterprises and pad his huge riches.

A few days after his legal team asked that the second amended case be dismissed, Musk changed the Twitter logo to the Dogecoin one on April 3. The Twitter CEO's filing at the time stated that funny pictures and tweeting words of support did not constitute fraud.

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At the time this article was published, Musk had not tweeted about the updated lawsuit. The Twitter CEO, who is among the wealthiest individuals on the planet, has spoken out frequently on Dogecoin and other cryptocurrencies, frequently causing the price of the token to soar. In 2019, he began tweeting to his tens of millions of followers about DOGE.

According to reports, since Musk purchased Twitter in October 2022 for $44 billion, the social media site's valuation has fallen to about 33% of that sum. On May 12, he said that Linda Yaccarino, the previous vice president of global partnerships and advertising at NBCUniversal, will take over as CEO sometime in June.

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