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- Elon Musk was accused of insider trades in a lawsuit filed by a group.
- Investors claimed that Tesla CEO promoted meme-based cryptocurrency Dogecoin to their detriment.
- Musk has expressed his excitement for the token on numerous occasions, including one time during "Saturday Night Live."
Investors accuse Elon Musk of insider trade in a proposed lawsuit. They claim that the billionaire intentionally manipulated the price for the cryptocurrency Dogecoin.
Plaintiffs stated in a lawsuit filed on Wednesday in Manhattan Federal Court that Musk and his company Tesla "wrongfully profited billions of dollars at the expense of millions of hard-working Americans" by selling the meme token.
The amended complaint, the third amendment since the lawsuit began last June, includes a new allegation, that Musk sold dogecoins worth $124 million, after he changed Twitter's logo in April to a Shiba Inu dog. The token's value increased by 30% after Musk changed Twitter's logo to a shiba inu dog.
Reuters and other outlets reported the amendment.
Musk, the new richest man in the world, has been a dogecoin enthusiast for a very long time.
He called himself the "Dogefather" in April 2021 on Twitter. On "Saturday Night Live" the following month, he declared that the token is "the future currency."
Musk downplayed that support during an event held in London last weekend, saying that he was not advising anyone to bet "the farm" on cryptocurrency.
Dogecoin, which was designed as a joke with no practical applications, surged in popularity at the height of the 2021 crypto boom but has since plummeted. It is currently trading at just under 7 cents, 90% lower than the peak of 68 cents on May 8, a day before Musk appeared on "SNL".
Musk and Tesla asked last week if another amendment to the case could be justified. Judge Alvin Hellerstein, however, said that in a separate order issued Wednesday he was likely to allow it.
Alex Spiro is a lawyer who represents both Musk and Tesla. He did not respond immediately to an Insider request for comment made outside of normal business hours.
Read More: Elon Musk’s latest financial advice: don't pour all your savings into dogecoin
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By: gglover@insider.com (George Glover)
Title: Elon Musk hit with dogecoin insider trading lawsuit
Sourced From: markets.businessinsider.com/news/currencies/elon-musk-dogecoin-tesla-cryptocurrency-insider-trading-class-action-lawsuit-2023-6
Published Date: Fri, 02 Jun 2023 10:30:00 +0000
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