New facts and evidence regarding Elon Musk’s cryptocurrency trading and promotional activities surfaced in an amended lawsuit on May 31.
The latest filings have provided fresh evidence of Mr. Musk’s alleged market manipulation.
Twitter logo stunt highlighted
In the filing, plaintiffs allege that Musk temporarily replaced Twitter’s bird logo with Dogecoin’s logo. This coincided with DOGE’s price jumping 30% of his and falling after the original logo was restored.
As the lawsuit suggests, the logo change took place in April 2023, not April 2022. Nonetheless, it was correlated with significant market changes, as claimed.
The filing also alleges that Musk is responsible for “the entire Dogecoin business” and has a fiduciary relationship with the assets, as required for insider trading allegations. It also claims that Dogecoin is a security under the Securities and Exchange Act. Musk and Tesla’s Dogecoin “whale” wallet has been identified.
The filing further alleges that Musk manipulated the Bitcoin market when Tesla traded Bitcoin. The company has been buying and selling Bitcoin since 2021.
Finally, the proposed amendment is intended to exclude the Dogecoin Foundation as a defendant. individual report from Reuters It suggests that the judge in the case granted this request.
Rebuttal to dismissal request
These developments follow the earlier case of Johnson et al. v. Musk et al. The plaintiffs began litigating in June 2022, seeking $258 billion in damages.
Musk and Tesla tried to dismiss the lawsuit around April 2023.
Plaintiffs intend to prove their claims are valid by introducing new facts and evidence. Otherwise, Mr. Musk and Mr. Tesla may succeed in dismissing the lawsuit.
The U.S. judge in the case said in the order that it was “likely to grant” the amended complaint, now in its third amendment, according to Reuters.
Elon Musk’s Twitter-to-Doge logo switch post, which was featured as evidence in the lawsuit, first appeared on CryptoSlate.
