On Friday, sources reported that Elon Musk has requested a U.S. judge to dismiss a $258 billion lawsuit that accuses him of running a pyramid scheme in support of the Dogecoin cryptocurrency. Attorneys representing Elon Musk and Tesla referred to the lawsuit brought by Dogecoin investors as a “fantastical work of fiction” in a filing made in a Manhattan federal court. They argued that the allegations against Musk were unfounded, and that his tweets regarding Dogecoin were innocent and at times, absurd.
Musk’s legal team argued that the investors failed to provide any evidence of how the Twitter CEO planned to deceive anyone or what risks he concealed. They also asserted that Musk’s statements, including “Dogecoin Rulz” and “no highs, no lows, only Doge,” were too ambiguous to support allegations of fraud. The lawyers emphasized that expressing support for a legitimate cryptocurrency with a market cap of almost $10 billion through humorous or positive tweets is not illegal. They further added that the court should dismiss the complaint as a “fantasy.”
Additionally, Musk’s legal representatives dismissed the investors’ assertion that Dogecoin should be classified as a security. Meanwhile, Evan Spencer, the investors’ attorney, stated via email that they were even more confident in the success of their case in response to the filing.
The investors claim that Musk deliberately inflated Dogecoin’s value by over 36,000% in two years before allowing it to plummet. Moreover, they accused Musk of making billions of dollars in profit at the expense of other Dogecoin investors, even though he knew the currency was worthless. They cited Musk’s “Saturday Night Live” appearance where he called Dogecoin a “hustle.” The lawsuit is seeking $258 billion in damages, triple the estimated decline in Dogecoin’s market value in the 13 months prior to the suit being filed. However, the Dogecoin Foundation, a nonprofit organization, is also named as a defendant and is attempting to have the case dismissed.