It’s official: the massive $258 billion lawsuit against Elon Musk over his alleged manipulation of Dogecoin prices has been pulled, and the drama surrounding the Tesla CEO and the beloved memecoin is finally winding down—for now, at least.
After nearly two years of legal battles, the class-action lawsuit filed by Dogecoin investors in 2022 has officially been withdrawn. The plaintiffs filed paperwork on November 14, 2024, confirming that they no longer intend to continue their appeal against Musk and his company, Tesla. But before you start wondering if this was all just a “doge” chase, let’s break down what led to this decision and what’s next for Musk and Dogecoin.
The Drama That Started It All: The $258 Billion Dogecoin Lawsuit
It all started back in 2022, when a group of Dogecoin investors sued Elon Musk and Tesla, accusing them of orchestrating a massive market manipulation scheme to boost the price of Dogecoin. The lawsuit alleged that Musk used his celebrity status, social media presence, and media appearances (remember when he hosted Saturday Night Live and called himself “The Dogefather”?) to artificially inflate the price of the memecoin.
The investors argued that Musk’s social media posts and public endorsements of Dogecoin were deliberate attempts to manipulate the crypto market. Keith Johnson, one of the plaintiffs, even claimed that Musk had created a “Crypto pyramid scheme” with the help of his companies, celebrities, and even his own “Doge Army”—his army of online followers and supporters.
The lawsuit made a bold claim: Musk and Tesla were responsible for a $258 billion loss by allegedly pumping and dumping Dogecoin’s price. The plaintiffs pointed to Musk’s various comments, from his playful Dogecoin tweets to his SNL appearance, where he introduced himself as the “DogeFather” and hinted at his influence on the memecoin market.
Musk’s Legal Response: ‘This Is Just Fiction’
From the get-go, Musk’s team was quick to push back. In response to the lawsuit, his lawyers filed a motion to dismiss, calling the case a “work of fiction.” In fact, they argued that there was nothing illegal about Musk sharing his thoughts on Dogecoin—tweets, memes, or even his Saturday Night Live skit. Musk’s legal team pointed out that Dogecoin was a legitimate cryptocurrency with a market cap of nearly $10 billion at the time, and tweeting about it didn’t constitute market manipulation.
The legal defense essentially boiled down to this: Musk wasn’t manipulating anything—he was just having fun with a cryptocurrency that had already gained significant attention and value. The case appeared to hinge on whether his tweets and public statements could legally be considered market manipulation. But Musk’s team remained firm, dismissing the case as a baseless money grab.
The Big Withdrawal: Plaintiffs Drop the Case
Fast forward to November 2024, and after months of back-and-forth legal motions, the investors have decided to walk away. The plaintiffs formally withdrew their appeal to the Second Circuit Court of Appeals and have agreed not to seek any further post-judgment relief from Musk or Tesla. They also waived their right to appeal the case in any U.S. court, which means this legal battle is essentially over.
Both sides have also agreed to drop motions to sanction each other—no fines or penalties to be issued. But the case still needs final approval from U.S. District Judge Alvin K. Hellerstein before it’s completely wrapped up. If all goes smoothly, the two-year-old lawsuit will officially come to an end.
What’s Next for Musk and Dogecoin?
With the lawsuit now officially out of the picture, Musk can breathe a little easier. But his relationship with Dogecoin isn’t over just yet. In fact, back in March 2024, Musk teased that Tesla might start accepting Dogecoin as payment for its vehicles, though he didn’t offer any specifics on when or how that would happen. So, while the courtroom drama has settled, it looks like Dogecoin could still have a role to play in Musk’s future plans.
Despite the legal challenges, Dogecoin remains a fan favorite in the crypto world—largely due to Musk’s ongoing support and playful involvement with the memecoin. Whether it’s tweeting memes or making vague comments about Dogecoin payments, Musk’s influence on Dogecoin is undeniable.
The Final Word: Was This a Win for Musk or Dogecoin?
The dismissal of this lawsuit is a major win for Elon Musk, but it’s also a reminder that, in the world of cryptocurrencies, things can get pretty murky. While the lawsuit didn’t lead to any serious legal consequences for Musk, it did raise important questions about the intersection of social media influence, celebrity endorsements, and market manipulation in the crypto space.
For Dogecoin investors, this may be a frustrating chapter in what has been a volatile journey with the memecoin. But for Musk, it’s a big win—and it clears the way for him to continue playing around with Dogecoin without worrying about a looming courtroom showdown.
So, for now, the Doge drama is officially over—but who knows what the future holds for Elon Musk, Tesla, and the ever-volatile world of Dogecoin? One thing’s for sure: this saga isn’t the last we’ve seen of Musk’s connection to crypto. The Dogefather still has some tricks up his sleeve!
