Elon Musk’s Dogecoin Legal Battle Ends as Investors Withdraw Their Appeal

The case, which sought $258 billion in damages, was dismissed in August 2024, with U.S. District Judge Alvin Hellerstein ruling that Musk's tweet and public statements were too vague to constitute securities fraud.

A federal lawsuit accusing Elon Musk of manipulating the price of Dogecoin has ended after investors withdrew their appeal.

The case, which sought $258 billion in damages, was dismissed in August 2024, with U.S. District Judge Alvin Hellerstein ruling that Musk’s tweet and public statements were too vague to constitute securities fraud.

Investors alleged that Musk’s actions, including his appearance on “Saturday Night Live,” were timed to benefit his financial interests at their expense.

🚨 BREAKING: Lawsuit accusing Elon Musk of rigging $DOGE ends as investors drop their appeal and legal motions. pic.twitter.com/zpMa2foJQ5

— Cointelegraph (@Cointelegraph) November 15, 2024

Investors initially accused Musk of market manipulation and securities fraud. They claimed that his appearance on “Saturday Night Live” and other public statements led to significant financial losses for them.

As the case progressed, investors shifted their focus to insider trading and deliberate price manipulation. They alleged that Musk’s social media activity directly influenced Dogecoin’s market fluctuations and that he used his status to artificially inflate the price for personal gain.

Both parties filed a stipulation on November 15, 2024, to drop their respective appeals and legal motions in federal court, effectively ending the dispute. This decision follows the judge’s earlier dismissal of the investors’ claims and their attempts to sanction Musk’s legal team for alleged interference during the appeal process.

Musk’s legal representative maintained that the lawsuit was based on inconsistent theories and was an attempt to extort a quick payout.

The conclusion of this litigation coincides with Musk’s new role as co-chair of the Department of Government Efficiency (DOGE), an initiative launched by President-elect Donald Trump.

This outcome highlights the complexities surrounding cryptocurrency regulation and the challenges faced by investors when alleging fraud in volatile markets like Dogecoin.

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