Dogecoin Holders Sue Elon Musk for Insider Trading

  • A group of Dogecoin holders have amended a class action lawsuit against Elon Musk to include allegations of insider trading.
  • The investors claim they suffered financial losses as a result of the Twitter CEO’s publicity stunts.
  • Musk’s lawyers sought to dismiss the lawsuit in March, arguing that his statements were too vague and silly.

Dogecoin Class Action Lawsuit Against Elon Musk

A group of Dogecoin (DOGE) holders are seeking to amend a class action lawsuit against billionaire Twitter CEO Elon Musk. The original complaint was filed in June 2022 and now includes allegations of insider trading. According to Reuters, the investors are claiming financial losses due to the Twitter CEO’s deliberate marketing efforts which caused the price of the meme cryptocurrency to jump.

Insider Trading Allegations

In an amendment filed with the Manhattan federal court on Wednesday, investors accuse Musk of using Twitter posts, paying influencers, appearing on NBC’s “Saturday Night Live” and other publicity stunts so he can trade profitably at their expense. They also cite an incident in April when Musk sold around $124 million worth of Dogecoin after its price jumped 30% following his decision to change Twitter’s blue bird icon with DOGE’s Shiba Inu dog logo. The filing alleges that Musk deliberately used “market manipulation and insider trading” techniques for personal gain while causing investor losses.

Lawsuit Dismissal Attempt by Musk’s Lawyers

U.S. District Judge Alvin Hellerstein has said he will likely approve the third amended complaint as it will not likely prejudice defendants such as Musk. The billionaire’s lawyers attempted dismissal in March, saying the lawsuit is fictional and that Musk’s statements about DOGE should not be considered actual endorsements since they were too vague and silly.

Musk Opponents Seek Financial Compensation

Opponents are seeking compensatory damages from both actual and punitive damages for all economic harm suffered as a result of alleged market manipulation by Tesla CEO Elon Musk. It remains unclear whether or not this new legal action will be successful or if any compensation would be awarded should litigation prove successful in court proceedings.


The amended class-action lawsuit adds another layer to already complicated issues surrounding Tesla CEO Elon Musk’s influence over cryptocurrencies like Dogecoin (DOGE). Whether or not these claims have any merit is yet to be seen but it certainly brings into question how much power one individual holds in an ever-expanding digital asset space.

Dogecoin Holders Sue Elon Musk for Insider Trading
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