Investors accuse Elon Musk of manipulating Dogecoin

Investors have filed a lawsuit accusing Tesla CEO Elon Musk of insider trading and manipulation of the cryptocurrency Dogecoin, resulting in significant financial losses for investors.

In a filing made in Manhattan federal court, investors claimed that Musk used various means such as Twitter posts, paid online influencers, and his appearance on "Saturday Night Live" in 2021 to manipulate Dogecoin's price for personal gain. They claim that Musk profited from trading through Dogecoin wallets controlled by him or Tesla.

One specific incident highlighted in the lawsuit is Musk's sale of approximately $124 million worth of Dogecoin in April. This transaction followed Musk's decision to replace Twitter's logo with Dogecoin's Shiba Inu dog logo, which caused a 30% surge in the cryptocurrency's value. The investors argue that Musk's actions amounted to a deliberate strategy of market manipulation and insider trading, aimed at defrauding investors and promoting himself and his companies.

Elon Musk, who acquired Twitter last year and also leads SpaceX and Tesla, has not provided a comment on the allegations. His lawyer and representatives of Tesla declined to comment as well. The investors' lawyer has not yet responded to requests for comment.

Investors argue that Musk deliberately inflated the price of Dogecoin by more than 36,000% over two years, only to allow it to collapse later. These latest allegations were included in a proposed third amended complaint in an ongoing lawsuit that began last June.