Elon Musk Cleared in $258 Billion Dogecoin Fraud Case

Dogecoin investors have formally withdrawn their legal appeal against Elon Musk and Tesla, bringing an end to a high-profile case accusing the billionaire of manipulating the cryptocurrency’s value. The lawsuit originally sought $258 billion in damages, alleging fraud and insider trading, but was dismissed by a US federal court in August 2024.

Claims of Manipulation Fail to Hold in Court

The lawsuit accused Musk of inflating Dogecoin’s price through his tweets, public remarks, and stunts like replacing Twitter’s logo with Dogecoin’s emblem in April 2023. However, Judge Alvin Hellerstein ruled the claims lacked merit, stating Musk’s comments were “aspirational and puffery,” not actionable grounds for securities fraud.

The dismissal was with prejudice, meaning the case cannot be refiled. In response, Musk’s legal team described the allegations as “frivolous and baseless,” adding that his social media activity did not constitute market manipulation.

Mutual Agreement to End Litigation

Following the court’s decision, both parties filed to dismiss outstanding motions, including mutual requests for sanctions. Judge Hellerstein is expected to formally approve the withdrawal. Legal representatives for the plaintiffs have not commented publicly, while Musk’s lawyer, Alex Spiro, called the resolution “a good day for Dogecoin”.

A Pattern of Influence in Cryptocurrency Markets

Musk remains a divisive figure in the cryptocurrency world, where his public statements often lead to sharp market reactions. Despite this legal victory, questions linger about the broader implications of his influence on volatile markets like cryptocurrency.