2023-06-02 21:03:28
© Reuters Dogecoin: Elon Musk accused of insider trading with memecoin
CriptoFácil – The billionaire owner of Twitter Elon Musk is being accused of insider trading in a class action proposed by investors. According to the plaintiffs in the lawsuit, the CEO of Tesla (NASDAQ:) manipulated the cryptocurrency, costing them billions of dollars.
Insider trading is the practice of buying or selling stocks or other assets based on privileged information, not available to the general public, in violation of financial market rules. Such conduct is illegal and may result in civil and criminal penalties.
As reported by The Guardian, in a lawsuit appearing in federal court in Manhattan, in the United States, investors said that Musk used Twitter posts, paid online influencers, promoted his 2021 appearance on NBC’s Saturday Night Live and performed other ” publicity stunts” to make a profit when trading DOGE.
Elon Musk e Dogecoin
Furthermore, the authors say that one such occasion occurred when Musk changed the Twitter logo to the memecoin image. On that day, as reported by CriptoFácil, the price of DOGE rose by more than 30%.
Soon after, in early April, Musk would have sold – according to the lawsuit – around US$ 124 million in Dogecoin. The authors say Musk pursued a “deliberate course in carnival barking, market manipulation and insider trading” to defraud investors and promote himself.
Along these lines, Dogecoin investors have accused Musk of deliberately increasing the price of Dogecoin by over 36,000% in two years and then letting it crash.
This isn’t the first time Musk’s action has influenced market sentiments. Since Musk’s acquisition of Twitter, there has been growing speculation about cryptocurrency’s role in the social media platform. Musk is also facing a $258 billion lawsuit over his tweets and mentions of memecoins.
The owner of Twitter has been a big supporter of Dogecoin. His first post about the memecoin was in early 2021. He tweeted “Doge” and posted a meme with the Dogecoin logo. This caused the value of the cryptocurrency to increase by more than 50% at the time.
Since then, Musk has been a vocal memecoin advocate, referring to himself as the “Dogefather” and regularly tweeting about the cryptocurrency. In May 2021, he even mentioned Dogecoin during his appearance on Saturday Night Live, which caused the value of the cryptocurrency to plummet.
At the time of writing, Dogecoin is priced at $0.072, having gained about 1% in the last 24 hours, according to data from CoinGecko.
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