In 2022, an investor in Dogecoin assets sued Twitter CEO, Elon Musk over the alleged ponzi coin endorsement case. In his complaint, Elon Musk was demanded to pay US$ 258 billion for causing losses to these investors.
“The defendant was aware since 2019 that Dogecoin has no value but is promoting Dogecoin to profit from its trade.Musk uses his pedestal as the world’s richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and entertainment,” the complaint reads.
This led to a separate debate from Crypto Twitter (CT), who agreed and opposed these demands. The CTs who are pro-claims say that Dogecoin is indeed a security and must comply with the laws in force in America.
“It (Dogecoin) is definitely a security. And it is forbidden to promote it by law, “said a CT named JC Thomas.
Not only on Twitter, an account with the name Mayank Soni on Facebook also thinks that Elon Musk plays a classic pumper. In this case Soni explained that Musk bought the meme coin, recommended it to people, then sold it.
“Only stupid people defend him,” he said. Meanwhile, the CT named Cesar Azucena, who opposed these demands, stated that Musk had the right to support one of his favorite digital assets. In fact, some say that this claim is unreasonable. The reason is, if someone wants to invest in an asset then it would be nice to do their own research.
Meanwhile, the latest news is that Elon Musk asked a US judge last Friday to reject the lawsuit worth US $ 258 billion. In a formal request filed Friday, Musk’s legal team described the lawsuit filed by Dogecoin investors as a “work of imaginary fiction.”
They argued that investors failed to explain how Musk intended to defraud anyone or what risks he was hiding. They also argue that the Tesla CEO’s comments – such as “Dogecoin Rulz” and “no highs, no lows, only Doge” – are too ambiguous to support the allegations of fraud.
“There is nothing illegal about providing endorsements or funny pictures of legit cryptocurrencies. This court must stop the plaintiffs’ delusion and dismiss the lawsuit,” said Elon Musk’s legal team. However, Musk’s legal team also disputed DOGE investors’ claims that Dogecoin met the criteria to be classified as a security.
Although the Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler has said in several Bitcoins that all crypto tokens besides Bitcoin, are securities, many people argue that his opinion is not law.
