Accused in a complaint 2 years ago of having manipulated Dogecoin (DOGE) through his tweets, Elon Musk won his case in court this week. What made the judge decide?
Elon Musk wins legal case
It's been more than 2 years now, American Keith Johnson filed a complaint against Elon Musk and Teslaalleging market manipulation in Dogecoin (DOGE). Nearly a year later, the entrepreneur filed for the dismissal of the complaint and the $258 billion in damages sought in the lawsuit.
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Since the person concerned is known for his tweets that can move the market in one direction or another, the possibility of a trial could have been considered, although an outcome with sanctions in the amounts cited is very unlikely. In the end, there will be neither, Judge Alvin K. Hellerstein ruled in favor of the defense.
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Arguments inadmissible for the judge
Indeed, the complaint was dismissed, on the grounds that Elon Musk's statements used as arguments were not sufficiently solid and “that no reasonable investor could rely on it“. Thus, the judge takes up several of these statements, which he describes as exaggerations and unverifiable facts which cannot therefore serve as a basis for legal action:
These paragraphs refer to statements by Musk on “Twitter” suggesting that Dogecoin might be his favorite currency and that he had purchased some for his son, that Dogecoin is the people’s crypto and the future currency of Earth, that it could become the standard for the global financial system and the currency of the Internet, that Musk had agreed to become the CEO of Dogecoin, and that he was considering placing a “real” Dogecoin in [une fusée, ndlr] SpaceX and send it to the moon, and that Dogecoin would fund the mission, that Tesla vehicles could be purchased with Dogecoin, etc.
This case will therefore not lead to a trial and the clerk could even impose costs on the persons who made the complaint.
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For its part, DOGE is trading at nearly $0.1 and a market cap of $14.54 billion, down 1.3% over 24 hours as of this writing. For his part, Elon Musk does not appear to have publicly responded to Judge Hellerstein's decision.
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Source: Court decision
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Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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