“Elon Musk Beats $258 Billion Dogecoin Lawsuit—Here’s What Happened!”

Dogecoin Investor Lawsuit Against Elon Musk Dropped

Elon Musk, the ever-controversial CEO of Tesla, has long been associated with Dogecoin. His casual tweets and public statements in 2021 catapulted the memecoin into the limelight, earning him the playful moniker “The Dogefather.” But this influence hasn’t come without consequences. In 2022, a group of investors filed a massive class-action lawsuit against Musk, accusing him of market manipulation. Now, after two years of legal wrangling, the plaintiffs have withdrawn their case.

A Two-Year Legal Battle Ends

The lawsuit, filed in 2022, accused Musk and Tesla of manipulating the price of Dogecoin through public endorsements, including his infamous Saturday Night Live appearance. In a surprising turn on Nov. 14, 2024, the plaintiffs officially dropped their appeal in the Second Circuit Court of Appeals and waived their right to further litigation.

Legal Closure on the Horizon

Though the plaintiffs and Musk’s legal team have agreed to withdraw all pending motions and appeals, the final closure of the case still rests in the hands of U.S. District Judge Alvin K. Hellerstein. His approval is required to formally dismiss the lawsuit.

The $258 Billion Lawsuit: A Brief Recap Accusations of a “Crypto Pyramid Scheme”

At the heart of the lawsuit was an eye-popping $258 billion claim. Investors alleged that Musk’s public persona and promotion of Dogecoin constituted a “crypto pyramid scheme.” In their initial filing, plaintiff Keith Johnson wrote:

> “Defendant Musk is the self-appointed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin — who assembled the ‘Doge Army’… to increase the price, market cap, and trading volume of Dogecoin.”

Musk’s appearance on Saturday Night Live in May 2021, where he joked about Dogecoin, was a pivotal moment cited in the complaint. Investors argued it led to a dramatic price surge and subsequent crash, which they claimed was intentional market manipulation.

Musk’s Defense: “A Work of Fiction”

In April 2023, Musk’s legal team sought to dismiss the case entirely, describing the lawsuit as a “work of fiction.” His attorneys argued:

> “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.”

Musk’s Continued Relationship with Dogecoin

Despite the legal battles, Musk has continued to reference Dogecoin in public forums. In March 2024, he hinted at the possibility of Tesla accepting Dogecoin as payment for its vehicles, though no concrete plans have been announced.

While Musk’s relationship with Dogecoin may remain polarizing, this lawsuit’s dismissal marks a significant victory for the billionaire and Tesla. As crypto markets continue to evolve, so too will the debate around the influence of high-profile individuals on digital assets.

What’s Next?

The saga of Musk and Dogecoin serves as a reminder of the blurred lines between enthusiasm and influence in the world of cryptocurrencies. With the legal battle seemingly drawing to a close, all eyes are now on Musk to see how he navigates his future interactions with Dogecoin and the broader crypto space.