Judge Dismisses the Dogecoin Manipulation Lawsuit Against Elon Musk and Tesla, Citing a Lack of Evidence

An accusation against Tesla chief Elon Musk and his electric motor company would not proceed to trial after a court threw out the case late Thursday.

A United States court has dismissed a lawsuit filed against Tesla chief Elon Musk and his electric motor company over allegations of manipulating Dogecoin (CRYPTO: DOGE) prices.

法官驳回埃隆·马斯克操纵狗狗币诉讼：证据不足

Here's what happened: Judge Alvin Hellerstein of the United States District Court for the Southern District of New York ruled late Thursday that the evidence provided to show that Musk manipulated Dogecoin was inadmissible.

According to the judge, the case lacked evidence to continue as the plaintiff’s claims were not in sync with the evidence provided. He then dismissed the lawsuit on those legal grounds.

A group of investors had sued Musk and Tesla two years ago for allegedly manipulating Dogecoin to benefit himself, arguing that he harmed holders of the memecoin with his actions. In the June 2022 lawsuit, the plaintiffs sought a massive $258 billion to compensate for damages and losses.

Evidence Is Inadmissible: In his ruling two years later, Judge Hellerstein said that the evidence brought forth was a clear misinterpretation of Musk's tweets about DOGE.

The investors had argued that Musk promoted Dogecoin through his tweets, making statements like how the memecoin was the future of cryptocurrency, how he was the CEO of Dogecoin, and how he would literally be flying the token to the moon via SpaceX.

However, Judge Hellerstein stated that Musk's tweets were his fantasies and aspirations, which were open to falsification and misinterpretation. The judge also said that they were Musk's opinions, and no reasonable investor would construe them as financial advice.

The court also dismissed Musk's "pump and dump" allegations. Judge Hellerstein said that market manipulation, as defined by the law, involves insider trading, and the claims didn't provide evidence of such activity. The plaintiff had accused Musk of pumping Dogecoin by over 36,000% in two years and then allowing it to crash.

Dogecoin Price Action: DOGE showed little response to the lawsuit dismissal, as it was seen consolidating amid a broader downtrend in the market. At the time of writing, Dogecoin was trading at $0.1001, down less than 1% over the past 24 hours. The memecoin was still ranked eighth in the cryptocurrency market with a live capitalization of $14.5 billion.

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