End of the Dogecoin affair, Musk and Tesla untouchable?

The sprawling lawsuit between Elon Musk and Tesla and a group of Dogecoin investors has just ended unexpectedly. After two years of twists and turns, the plaintiffs withdrew their appeal, marking the end of a legal battle that had captivated the crypto world and beyond. But what can we learn from this case which accused the richest man in the world of manipulating the crypto market with tweets? Let’s take stock.

A case with multiple twists and turns

The Dogecoin case against Elon Musk had the appearance of a legal soap opera. Filed in 2022, the initial complaint accused Musk and Tesla of fraud and market manipulation.

The plaintiffs alleged that Musk’s enthusiastic tweets and media appearances – such as the famous one on the set of “Saturday Night Live” where he jokingly called Dogecoin a “fraud” – caused deliberate fluctuations in the crypto’s price.

Investors estimated their losses at $258 billion, an astronomical amount that shook financial circles.

Despite four amendments and persistent allegations, the case was dismissed in August 2023 by Judge Alvin Hellerstein, who ruled that evidence of fraud was sorely lacking.

However, investors were not discouraged. They had appealed and demanded sanctions against Musk’s legal team, accused of delaying strategies.

This maneuver fueled public interest in an affair which, until then, crystallized passions around the influence of public figures on the cryptocurrency markets.

An epilogue with multiple implications

The plaintiffs’ decision to withdraw their appeal marks the end of a saga that highlighted Musk’s influence in the crypto sector. In response to the withdrawal, Musk and Tesla also dropped their demand for sanctions against the investors’ lawyers, whom they accused of launching a “frivolous” lawsuit.

Judge Hellerstein, already asked several times, ruled that Musk’s statements – including famous phrases like “Dogecoin is the future currency of Earth” – did not constitute valid reasons for serious investors to base their financial decisions.

The end of this lawsuit could have broader implications for the crypto industry. On the one hand, it highlights the power of the words of influential figures, particularly when it comes to markets as volatile as cryptos.

On the other hand, it reaffirms the limits of legal action when it comes to proving securities fraud based on tweets or media jokes.

The Future of Dogecoin Crypto and Musk’s Continued Influence

Even with the closure of this lawsuit, Dogecoin remains a topic of interest in the crypto landscape. Despite an 8% drop after the trial ended, market data showed that Dogecoin “whales” invested heavily, purchasing over $55 million in 24 hours. This demonstrates continued confidence in the potential of cryptocurrency, despite its volatility.

As for Elon Musk, it’s just another chapter in a book already rich in legal adventures. Between his roles at the helm of Tesla, SpaceX, and crypto. Meanwhile, the AI ​​is tightening the screw with strict measures.