The trial accusing Elon Musk of manipulating the cryptocurrency Dogecoin is nearing its end. Investors who alleged that Musk and Tesla committed fraud and insider trading have formally withdrawn their appeal of the case’s August 29 dismissal.
The appeal dropped on Thursday night in Manhattan’s federal court, followed a federal judge’s ruling that the claims lacked legal merit.
What was the Case About?
The investors accused Musk of using public stunts, such as tweets and a Saturday Night Live appearance, to manipulate Dogecoin’s price for personal benefit. They argued that his actions caused significant financial losses when they timed their trades around his statements.
The plaintiffs originally sought $258 billion in damages and amended their complaint four times over two years.
Judge Rejects Fraud and Manipulation Claims
In his August decision, U.S. District Judge Alvin Hellerstein ruled that the investors couldn’t substantiate claims of securities fraud based on Musk’s statements. These included tweets calling Dogecoin the “future currency of Earth” and promises that SpaceX would “fly Dogecoin to the moon.” The judge also dismissed allegations of market manipulation and insider trading.
Previously, Musk and Tesla sought sanctions against the investors’ lawyer, arguing the lawsuit was frivolous and based on ever-changing legal theories. Both parties have since withdrawn their motions for sanctions.
Can Dogecoin’s Price Reach $1?
Even as the lawsuit concludes, Dogecoin remains a focal point among cryptocurrency enthusiasts. The meme-based coin, initially created as a joke, is currently trading at $0.3789, marking a 3.24% increase in the past 24 hours and boasting a global market cap of $55.64 billion.
The token has seen an impressive 80% surge in value over the last week, driven by significant purchases from “whales” who reportedly invested over $55 million in a single day. Speculation about Dogecoin reaching $1 continues to grow among traders.
Musk’s Expanding Influence
The resolution of the Dogecoin case coincides with Musk’s continued prominence in the news. Earlier this week, President-elect Donald Trump announced Musk and biotech entrepreneur Vivek Ramaswamy as leaders of the newly formed Department of Government Efficiency, which aims to streamline federal operations.
Beyond his leadership roles at Tesla, SpaceX, and X (Twitter), Musk is engaged in other high-profile legal battles. His AI company, xAI, recently filed a lawsuit against OpenAI and Microsoft, accusing them of monopolistic practices in the AI sector.