A $258 billion lawsuit accusing Elon Musk and Tesla of manipulating the price of Dogecoin has been withdrawn by investors, marking the end of a legal battle that spanned two years.
The lawsuit, initially filed in 2022, alleged that Musk’s public endorsements of Dogecoin on platforms like Saturday Night Live and social media constituted market manipulation and a “crypto pyramid scheme.”
On November 14, 2024, the plaintiffs officially agreed to withdraw their appeal from the Second Circuit Court of Appeals and waive any further legal action against Musk or Tesla.
The motion to dismiss is now awaiting approval from U.S. District Judge Alvin K. Hellerstein to finalize the case’s resolution.
The lawsuit originated from Musk’s high-profile promotion of Dogecoin during its meteoric rise in 2021.
Plaintiffs argued that his playful public persona as the “Dogefather” and tweets supporting the memecoin artificially inflated its value, leading to significant losses when the hype subsided.
In April 2023, Musk’s legal team dismissed the claims as baseless, describing the allegations as “a work of fiction.”
They emphasized that promoting a legitimate cryptocurrency, even humorously, does not amount to illegal activity.
Musk himself has continued to hint at his support for Dogecoin, suggesting earlier this year that Tesla might one day accept it as payment for vehicles.
The resolution of this lawsuit could set a precedent for how the courts view celebrity involvement in cryptocurrency markets.
While Musk’s support undeniably influenced Dogecoin’s value, the case shows the blurred lines between personal opinions and alleged market manipulation in the crypto space.
For now, Musk and Tesla have avoided further litigation, closing a chapter on one of the most high-profile legal battles in crypto history.
