According to reports, Elon Musk filed a request with a U.S. judge last Friday, hoping that the court would dismiss the “Dogecoin” lawsuit claiming $258 billion (currently about 1.77 trillion RMB). In the case, Elon Musk is accused of promoting the cryptocurrency Dogecoin in the form of pyramid schemes.
Elon Musk’s lawyers believe that Dogecoin investors’ lawsuits are like “fantasy fictions”, and Elon Musk just sent some innocuous and even stupid tweets about Dogecoin.
Who exactly is Elon Musk trying to deceive? What risk is he hiding? Investors were never clearly explained. Elon Musk did post some related tweets, such as declaring “Dogecoin rulz” with a Doge meme picture attached; he also said “no highs, no lows, only Doge”, but these vague contents cannot be used to accuse Elon Musk cheated.
Elon Musk’s lawyer argued: “Dogecoin is a legal cryptocurrency with a market value close to 10 billion US dollars. Sending some supportive tweets or interesting pictures cannot be asserted to be a violation of the law. The court should let the plaintiff stop fantasizing and the lawsuit should be dismissed.”
The plaintiffs argue that Dogecoin qualifies as a “security,” but Elon Musk’s lawyers disagree. Despite the counterattack, the plaintiffs’ lawyer Evan Spencer is still confident that the lawsuit can be won. Investors believe that Elon Musk deliberately increased the price of Dogecoin by 360 times in more than 2 years, and then let the price collapse. During the operation, Elon Musk made huge profits and let investors bear the losses. Elon Musk himself knew that Dogecoin had no intrinsic value.
Elon Musk once appeared on an NBC show in which he played a virtual financial expert who declared that Dogecoin was a “fraud.” In the 13 months before the lawsuit, the market value of Dogecoin plummeted, and the $258 billion compensation was equivalent to three times the evaporated market value.