Elon Musk, currently the world’s richest person, has been accused of insider trading in a proposed class action by investors. Musk has been accused of manipulating the cryptocurrency Dogecoin, costing them billions of dollars.
The filing was made in the Manhattan federal court on Wednesday night in which investors accused Musk of using Twitter posts and paying influencers and pursuing “publicity stunts” to make profits at their expense through multiple Dogecoin wallets that he controls.
Investors said this includes the time Musk sold about $124 million of Dogecoin in April after he replaced Twitter’s blue bird logo with Dogecoin’s Shiba Inu dog logo, leading to a 30 per cent spike in Dogecoin’s price.
The Tesla owner bought Twitter in October 2022.
Elon Musk insider trading accusation: What does the court filing say?
The investors have accused Elon Musk of deliberately driving up Dogecoin’s price by more than 36,000 per cent over the last two years and then letting it crash.
According to the filing in Manhattan court, a “deliberate course of carnival barking, market manipulation and insider trading” enabled Elon Musk to defraud investors, and pave the way for his own promotion and his companies.
Also watch | Elon Musk launches new AI start up to compete with OpenAI
They included their latest accusations in a proposed third amended complaint, in a lawsuit that began last June.
What did Elon Musk say?
Elon Musk and Tesla had in March sought a dismissal of the second amended complaint. They called it a “fanciful work of fiction,” and on May 26 said another amendment was unjustified.
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