Elon Musk was again sued by US investors. The billionaire is now accused of influencing and manipulating the market for Dogecoin, the world’s most popular memecoin.
In recent years, Musk, currently the richest man in the world, has confessed to Dogecoin several times that he is his cryptocurrency of choice. For many, their enthusiasm for the memecoin is simple and sincere.
But in the new lawsuit, the authors indicate that Musk is merely manipulating the market to make easy profits at the expense of unsuspecting investors.
“Insider Trading”: Lawsuit Filed Against Elon Musk Accuses Billionaire of Dogecoin Manipulation
Insider trading occurs when a person who has access to inside information uses it to gain an illegal financial advantage in the securities market.
This person may be an employee of the Company, such as an officer or director, or someone who has access to confidential information before it is made public.
The practice is considered illegal because it violates the principles of equal information and fairness in the financial markets. It gives insiders an unfair advantage over other investors who don’t have access to the same information.
In addition, insider trading undermines market integrity and trust, as it undermines the idea that all investors have an equal opportunity to make fair profits.
And it is based on this premise that investors have triggered Elon Musk into the new lawsuit, accusing the billionaire of manipulating Dogecoin with the power of his influence. It’s worth remembering that this isn’t the first lawsuit to accuse the billionaire of the practice.
According to Reuters, the case was filed in a New York court on the last day of May 2023. Elon Musk has not publicly commented on the matter.
Does Elon Musk like Dogecoin or is he just manipulating the price of the coin?
The new process indicates that Elon Musk would have hidden interests in discussing the meme currency publicly, such as a desire to make a profit, for example.
On other occasions, Elon Musk has denied that he negatively affects the price of Dogecoin. In April 2023, the billionaire even swapped the Twitter symbol for DOGE’s image, signaling that his support for the currency is true and not just a cheap manipulation.
— Elon Musk (@elonmusk) April 3, 2023
Thus, the new lawsuit will seek to prove that the billionaire has harmed investors in the cryptocurrency market, who relied on his public jokes to buy a meme currency.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.