HomeNewsThe Musk Effect: DOGE Price Skyrockets Amid Legal Counterstrike

The Musk Effect: DOGE Price Skyrockets Amid Legal Counterstrike

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  • Elon Musk and Tesla have filed for Rule 11 sanctions against the lawyer representing the Dogecoin plaintiffs, stating he knowingly based his case on a false premise.
  • As the legal battle heats up, Dogecoin’s value dropped by over 7% on the day Musk and Tesla submitted their latest filing.

Amid a whirlwind of controversy surrounding Dogecoin, Elon Musk, and Tesla Inc. have launched a counterattack against the lawyer acting for the Dogecoin plaintiffs in the ongoing lawsuit. Musk’s latest move, a recent filing in the U.S. District Court for the Southern District of New York, targets Evan Spencer of Evan Spencer Law with a motion for Rule 11 sanctions.

Dogecoin Value Stumbles Amidst Legal Dispute

Evan Spencer is the legal representative for a prospective group of Dogecoin investors who have sued Musk and his electric vehicle titan, accusing them of manipulating Dogecoin’s price for personal gain. However, Musk and Tesla contend that these allegations rest on a flawed foundation.

According to Reuters, Musk and Tesla claim in their recent filing that Spencer was fully aware his case was based on an untrue premise. This marks a strategic shift towards offense for Musk and his legal team.

This legal maneuver follows more than a month after Spencer submitted an amended complaint on behalf of the plaintiffs. The complaint asserted that Musk capitalized on his influence over the “meme coin,” particularly on Twitter (which he recently acquired), leading to substantial personal profit. This profit was allegedly earned by artificially inflating the coin’s value, only to sell off (“dump”) his holdings for billions of dollars.

However, Musk and Tesla refute these claims, stating that the wallets mentioned in Spencer’s amended complaint, associated with the contentious DOGE sales, are not theirs. They maintain that Spencer was aware of this before submitting the revised complaint, which leveled accusations of insider trading against Musk and Tesla.

In light of these revelations, Musk and Tesla are requesting the presiding judge to dismiss the amended complaint and impose sanctions on Evan Spencer.

The legal turmoil is not without consequences for Dogecoin. The crypto asset experienced a more than 7% dip in value on the day of Musk’s counter-filing. At the moment, Dogecoin is trading at $0.0699, a downturn amidst this escalating legal contest.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628