In June 2022, duped investors filed suit against entrepreneur Elon Musk. According to prosecutors, Musk operated a pyramid scheme to promote Dogecoin (DOGE). Musk’s lawyers now want the case dismissed. The charge is far too vague, the lawyers said. That appears from a report from Reuters on April 1.
Manipulative behavior regarding dogecoin
The victims demand a whopping $ 258 billion from Musk. He would have deliberately increased the price of Dogecoin by 36 thousand percent and then crashed it. The victims cite as an example the appearance of Musk in the American TV show Saturday Night Live in 2021.
During the episode, where Musk jokingly posed as an investor and made comical remarks about DOGE, Dogecoin’s price fell by 25 percent in a short period of time. Musk’s numerous tweets about Dogecoin are also cited as an example of his manipulative behavior to drive up the price.
Musk’s lawyers believe that the duped investors’ filed case is an “imaginative work of fiction”. According to the lawyers, Musk’s tweets are “innocuous and bland,” and too vague to classify as fraudulent. Among other things, the tweets read as follows: “Dogecoin Rulz” and “no peaks, no valleys, just Doge.” According to the lawyers, Musk therefore had no hidden motive.
Based on Musk’s usual tweeting behavior, this is a credible story. The billionaire regularly throws silly tweets into the world. However, the lawyer for the accusing group of investors is very sure of the case. “We are more confident than ever that our case will be a success,” said the lawyer.
Elon Musk is concerned about AI
This week Musk was in the news because of a petition about Artificial Intelligence. A group of 2600 tech entrepreneurs and scientists are concerned about the development of AI.
According to the group, development is going way too fast and this is potentially dangerous for humanity. Several prominent figures, including Musk, share these concerns and signed the petition.