Elon Musk seeks to end $258 billion Dogecoin lawsuit

NEW YORK, March 31 (Reuters) – Elon Musk requested a U.S. choose on Friday to throw out a $258 billion racketeering lawsuit accusing him of working a pyramid scheme to assist the cryptocurrency Dogecoin.

In a night submitting in Manhattan federal courtroom, attorneys for Musk and his electrical automobile firm Tesla Inc (TSLA.O) referred to as the lawsuit by Dogecoin traders a “fanciful work of fiction” over Musk’s “innocuous and infrequently foolish tweets” about Dogecoin.

The attorneys stated the traders by no means defined how Musk meant to defraud anybody or what dangers he hid, and that his statements reminiscent of “Dogecoin Rulz” and “no highs, no lows, solely Doge” had been too obscure to assist a fraud declare.

“There’s nothing illegal about tweeting phrases of assist for, or humorous photos about, a legit cryptocurrency that continues to carry a market cap of practically $10 billion,” Musk’s attorneys stated. “This courtroom ought to put a cease to plaintiffs’ fantasy and dismiss the grievance.”

In a footnote, the attorneys additionally rejected the traders’ declare that Dogecoin certified as a safety.

The traders’ lawyer, Evan Spencer, stated in an e mail: “We’re extra assured than ever that our case might be profitable.”

Traders accused Musk, the world’s second-richest particular person based on Forbes, of intentionally driving up Dogecoin’s worth greater than 36,000% over two years after which letting it crash.

They stated this generated billions of {dollars} of revenue at different Dogecoin traders’ expense, whilst Musk knew the foreign money lacked intrinsic worth.

Traders additionally pointed to Musk’s look on a “Weekend Replace” section of NBC’s “Saturday Evening Reside” the place, portraying a fictitious monetary skilled, he referred to as Dogecoin “a hustle.”

The $258 billion damages determine is triple the estimated decline in Dogecoin’s market worth within the 13 months earlier than the lawsuit was filed.

Dogecoin Basis, a nonprofit, can also be a defendant and searching for the lawsuit’s dismissal.

Musk’s posts on Twitter, which he owns, have prompted a number of lawsuits.

He gained a courtroom victory on Feb. 3 when a San Francisco jury discovered him not chargeable for tweeting in August 2018 that he had organized financing to take Tesla non-public.

The case is Johnson et al v. Musk et al, U.S. District Court docket, Southern District of New York, No. 22-05037.

Reporting by Jonathan Stempel in New York; Modifying by William Mallard

Our Requirements: The Thomson Reuters Belief Ideas.