• Elon Musk’s legal team has filed a motion to dismiss the $258 billion lawsuit alleging him of creating a Dogecoin pyramid scheme.
• The lawyers argued that Musk did not break any rules by tweeting his support for Dogecoin and dismissed the investors’ allegation that it was a security.
• Evan Spencer, legal counsel for the investors, expressed optimism about the case’s outcome despite Musk’s portrayal of a bogus financial expert on SNL.
Elon Musk Faces $258B Lawsuit
On March 31st, investors filed a $258 billion racketeering lawsuit against Elon Musk alleging him of creating a pyramid scheme to promote cryptocurrency Dogecoin.
Motion To Dismiss
Musk urged a U.S. court to dismiss the case and his legal team filed a motion in federal court in Manhattan on Monday night stating that Mr. Musk’s remarks such as “Dogecoin Rulz” were too nebulous to sustain fraud allegation and he never stated how he meant to deceive anyone or hid any dangers.
No Rules Broken
The attorneys argued that Elon did not break any rules by tweeting his support for Dogecoin which has an estimated market valuation of $10 billion and dismissed the investors’ allegation that it was security in one footnote.
Musk Allegedly Inflated Value Of Dogecoin
Forbes’ second wealthiest person, Elon Musk, has been accused by investors of intentionally inflating the value of Dogecoin by more than 36,000% in two years before letting it fall resulting in billions of dollars earned through taking advantage from those who had invested in it without any knowledge about its worthlessness. Investors also cited his portrayal of a bogus financial expert on NBC’s “Saturday Night Live” “Weekend Update” episode dubbing Dogecoin as “a hustle”.
Legal Counsel Optimistic About Outcome
Evan Spencer, legal counsel for the investors expressed optimism about the case’s outcome via email although no details were provided regarding this matter.