Elon Musk’s attorneys have filed a motion to dismiss a $258 billion racketeering lawsuit related to his tweets and references to Dogecoin (DOGE).
Lawyers argued that the lawsuit would have no merit in court because it was based on years of “harmless and often silly tweets” made by Mr. Musk. Musk’s attorney added that the plaintiff did not explain how Musk intended to defraud anyone or what risks he was hiding through his tweets.
Lawyer said:
“It is not illegal to tweet endorsements or funny pictures of a legitimate cryptocurrency that continues to maintain a market capitalization of nearly $10 billion.”
They also rejected plaintiffs’ claim that DOGE was the security in the application.
The judge has not yet decided on the matter.
class action racketeering lawsuit
Plaintiff Keith Johnson filed a class action lawsuit against Musk and his company on June 16, 2022.
The lawsuit accused Musk of promoting a pyramid scheme and deliberately driving up prices before DOGE crashed, even though he knew it had no intrinsic value. Investors claim Musk and the Dogecoin Foundation have made billions of dollars from the scheme.
According to the lawsuit, Musk is “fully aware and has been aware” that his tweets will affect Dogecoin’s price, market capitalization and trading volume. It further states that each such approval has prompted millions of people to invest their money in memecoins.
The lawsuit also alleges that Dogecoin is a security and a pyramid scheme. However, it uses statements by celebrities such as Charlie Munger and regulators such as the Reserve Bank of India to back up its claims.
Plaintiffs seek compensation of approximately $258 billion. This lawsuit is pending in the Southern District of New York.
Musk’s post calling for the court to dismiss the $258 billion DOGE racketeering lawsuit first appeared on CryptoSlate.
