Elon Musk Sued for Dogecoin Insider Trading – Autoblog

Elon Musk, the CEO of Tesla, is facing a proposed class action lawsuit accusing him of insider trading. The lawsuit alleges that Musk manipulated the price of the cryptocurrency dogecoin, which he has repeatedly expressed enthusiasm for, including during an appearance on “Saturday Night Live.” The plaintiffs claim that Musk and Tesla “wrongfully profited to the tune of billions of dollars on the backs of millions of working Americans” by promoting the meme-based token. The amended complaint, the third since the lawsuit began last June, includes a new allegation that Musk sold dogecoin worth approximately $124 million after changing Twitter’s logo to a shiba inu dog in April, causing the token’s price to surge by 30%. Musk has been a long-time fan of dogecoin and has referred to himself as “The Dogefather” on Twitter. However, he recently played down his support for the cryptocurrency, stating that he was not advising anyone to “bet the farm” on it. Dogecoin, which was created as a joke and has no practical use cases, surged in popularity during the crypto boom of 2021 but has since declined significantly. It is currently trading at just over 7 cents, 90% below its peak of 68 cents on May 8, the day before Musk’s “SNL” appearance. Musk and Tesla questioned whether another amendment to the lawsuit could be justified, but a judge has indicated that he is likely to allow it.