A group of investors has filed a lawsuit in Manhattan Federal Court, accusing Elon Musk of insider trading in the Dogecoin cryptocurrency. According to the plaintiffs, the billionaire abused his popularity and public trust in himself to manipulate the price of a digital asset.

The lawsuit alleges that he caused the artificial growth of the Dogecoin cryptocurrency through his Twitter posts, paid advertising campaigns by bloggers, his appearance on the NBC television channel, and several other promotional appearances. By doing this, the businessman allegedly secured the possibility of profitable trading through several Dogecoin wallets owned by him and his company, Tesla.

Changing the Twitter logo to the Dogecoin logo with a siba-inu dog helped Musk sell the cryptocurrency for another $124 million, causing his quotation to increase by 30%. All these actions were described by investors as “market manipulation and insider trading”. This is the third case of the case, which began in June last year. The businessman is accused of deliberately increasing the price of Dogecoin by more than 36,000% in two years and allowing the cryptocurrency to crash.

District Judge Alvin Hellerstein said in a ruling the previous day that he would “probably” accept the case in the third edition. It also accepted the investors’ petition to remove the non-profit organization Dogecoin Foundation from its defendant status. Source