Elon Musk’s legal representatives are attempting to have the $258 billion lawsuit dismissed, which claims the business mogul has been running an illegal ‘pyramid scheme’ to promote the meme-based cryptocurrency, Dogecoin. In their defense, the attorneys have deemed the allegations to be ‘fictitious’, highlighting that Musk’s tweets in support of DOGE are not unlawful.
About the Lawsuit
Elon Musk has been supportive of Doge for quite some time now. However, recently, allegations have been made that Elon Musk is running a pyramid scheme to manipulate the cryptocurrency’s price. At a hearing in a Manhattan federal court, the Tesla CEO’s legal representatives dismissed the claims as “fiction” and argued that his tweets were simply “silly” and did not amount to any illegal activity.
Furthermore, the lawyers representing Musk have asserted that the CEO had no intention to mislead anyone and that the terms “no highs, no lows, only Doge” were too vague to substantiate any claims of fraud or a “pyramid scheme”.
Dogecoin Holders React Positively
According to the on-chain metrics from Santiment, a crypto intelligence tracker, active DOGE addresses and transactions have seen considerable growth within the last few days. This could be seen as a sign of the increasing popularity of the meme coin, as well as a show of support from holders for Elon Musk’s actions.
The Shiba-Inu-inspired cryptocurrency experienced a 4% increase in its market value overnight, and this has resulted in a bullish sentiment amongst DOGE holders, as the meme coin resumes its upward trend.