Musk seeks dismissal of $258bn lawsuit accusing him of running a pyramid scheme and manipulating the Dogecoin exchange rate

Last week, US billionaire Elon Musk asked a court to dismiss a lawsuit accusing him of running a pyramid scheme and manipulating the Dogecoin exchange rate. Lawyers have called the claim a "bizarre fabrication".

Here's What We Know

Lawyers for the Tesla, SpaceX and Twitter CEO said the investors who sued Elon Musk have so far been unable to explain how he wanted to defraud them by leaving Twitter posts with words such as "Dogecoin Rulz". Lawyers believe there is nothing illegal in such entries. The same goes for posting images with Doge or a Shiba Inu dog.

According to the lawyers, the court should put an end to the fantasies of the plaintiffs and reject their plea. On the other hand, the plaintiffs' lawyer Evan Spencer argues that the applicants are more than confident of success. They accuse Elon Musk of deliberately inflating the value of the mock cryptocurrency by 36,000% over two years before allowing it to collapse.

Such actions generated billions of dollars in profits at the expense of other investors, even though Musk himself knew that the cryptocurrency had no value. In addition, the petitioners recalled the American billionaire's appearance on NBC's SNL programme, where he posed as a fictitious financial expert. It was after this speech that the DOGE exchange rate began to plummet.

A $258bn lawsuit against Elon Musk was filed in mid-2022. The claimants claimed they had lost around $86bn since 2019 after the businessman began promoting Dogecoin. By the way, Musk's fortune is estimated at less than $200bn.

Source: CNBC