Billionaire entrepreneur Elon Musk has refuted claims of owning the cryptocurrency wallets allegedly involved in suspicious Dogecoin trades. The denial came in response to a class-action lawsuit that accuses Musk of manipulating the value of Dogecoin for personal gain.

Elon Musk Accused Over Pump-and-Dump Scheme

The lawsuit, which has been ongoing for a year, claims that Musk orchestrated a pump-and-dump scheme and profited from selling $95 million worth of Dogecoins, a meme-based cryptocurrency. The class-action lawsuit, seeking a staggering $258 billion in damages, accuses Musk of involvement in a Dogecoin pyramid scheme.

The latest amendment to the complaint, filed on June 7 in a federal court in Manhattan, linked digital wallets allegedly connected to Musk and Tesla to transactions that took place between April 3 and April 6. These dates coincided with a period when Musk, through his Twitter account, replaced the social media platform’s iconic blue bird logo with the symbol of Dogecoin’s Shiba Inu.

The logo was changed on April 4, 2023, and it remained that way for about 3 days. Musk later said that he changed the logo as a joke, and that he did not intend to mislead anyone.

Elon Musk Twitter logo with Dogecoin (Source: Doha News)

The logo change was met with mixed reactions. Some people found it to be funny, while others were critical of Musk for using his platform to promote a cryptocurrency.

The logo change also had a small impact on the price of Dogecoin. The price of Dogecoin rose by about 10% in the hours after the logo change, but it then fell back down to its previous levels.

However, in a letter obtained by The New York Post, Musk’s attorney, Alex Spiro, vehemently dismissed the allegations in a strongly worded letter by stating:

“You specifically allege, without basis, that the following wallets ‘belong’ to Defendants. You are wrong.”

Spiro added:

“The sole basis for your claim is that these wallets sold Dogecoin at a time when, according to the Third Amended Complaint, prices were up.”

The lawsuit had already been amended in late May, with the plaintiffs accusing Musk of manipulating Dogecoin’s price through his social media influence, particularly with tweets and his appearance on NBC’s Saturday Night Live. Musk has playfully referred to himself as the “Dogefather” and “Dogecoin CEO.“

Musk has been open about his support for the meme-based cryptocurrency, often promoting it on Twitter. These actions have resulted in legal scrutiny and have raised questions about his involvement in the market.

The amended complaint pointed to a tweet made by Musk on February 10, 2021, where he mentioned purchasing a specific amount of Dogecoin. The transaction amount was apparently tied to Musk’s date of birth, June 28, 1971, and it corresponded to the balance in the wallet in question.

The complaint alleged that at its peak, Musk’s wallet held over $25 billion worth of Dogecoin.

Source: CoinMarketCap

What Does This Mean For The Future of Dogecoin?

The lawsuit against Musk could have a significant impact on the future of Dogecoin. If the court finds that Musk was involved in insider trading, it could damage the reputation of the cryptocurrency.

However, it is also possible that the lawsuit will have little impact on Dogecoin. The cryptocurrency has a large and loyal following, and it is possible that investors will simply ignore the lawsuit.

If Musk is found liable, it could set a precedent for other lawsuits against cryptocurrency promoters.

It could also discourage celebrities from promoting cryptocurrencies, which could have a negative impact on the industry.

The lawsuit is still ongoing, so it is too early to say what the long-term implications will be. However, it is clear that the lawsuit has the potential to have a significant impact on the cryptocurrency industry, and it will be closely watched by investors.

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