Elon Musk Defeats $258 Billion Dogecoin (DOGE) Lawsuit

As a seasoned analyst with over two decades of experience under my belt, I’ve seen many lawsuits come and go, but few as captivating as this one against Elon Musk involving Dogecoin. The allegations were severe, ranging from pyramid schemes to wire fraud, yet the court’s ruling was a testament to the power of free speech and the importance of clear communication.


Tesla CEO Elon Musk has managed to dismiss the $258 billion Dogecoin lawsuit.

Back in June 2022, a collective legal action was initiated claiming that the extremely wealthy individual was involved in an illegal cryptocurrency multi-level marketing structure, also known as a pyramid scheme.

The allegation states that Elon Musk unfairly increased his wealth, to the detriment of Keith Johnson and the class, by advertising the cryptocurrency through his social media accounts.

The influential entrepreneur faced allegations regarding wire fraud, operating an illegal gambling operation, making misleading advertisements, and engaging in deceitful business tactics.

The class was seeking $172 billion in treble damages and $86 million in monetary damages. 

It’s worth mentioning that, along with their other claims, the plaintiffs suggested that Tesla could be held responsible (because of its connection) for any wrongful acts attributed to Elon Musk, the centibillionaire.

In April, Musk’s legal team petitioned the court to dismiss the lawsuit without allowing for amendments. They argued that the plaintiff’s accusations were built on “nothing more than inferences, speculation, and suggestive hints.” Additionally, they stressed that Musk was not a Dogecoin insider and therefore held no responsibility towards the public. Tweets labeling him as “Dogefather” were deemed neither confidential information nor facts suggesting that he was an insider.

Regarding Tesla, Musk’s legal team contends that the accusations made by the plaintiffs are not substantial enough to support a lawsuit against Tesla.

As a crypto investor, I’m relieved to find out that Judge Alvin Hellerstein has ruled in favor of Musk and Tesla. In his decision, he deemed Musk’s controversial tweets as “aspirational,” rather than misleading or indicative of insider trading or fraud. This brings a sense of reassurance, knowing that the court recognizes the aspirational nature of such statements.

The lawsuit cannot be brought back to court since it has been permanently dismissed. 

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2024-08-30 09:11