A group of Dogecoin investors has asked for permission to amend a class-action lawsuit against Elon Musk, the soon-to-be former CEO of Twitter, alleging he manipulated the joke token’s price.
In a complaint on May 31 in the United States District Court for the Southern District of New York, the investors said Musk utilised his Twitter following and media appearances to profit from DOGE trading through a “undisguised course of cryptocurrency market manipulation.” According to the complaint, Musk gained from DOGE trading at the expense of other investors by causing the token’s price to skyrocket through activities such as changing Twitter’s logo to the Dogecoin logo. The investors initially filed their complaint in June 2022, prior to Musk’s takeover of Twitter but following his initial interest in promoting DOGE on the social media network but have revised the lawsuit at least thrice based on his conduct. They asked the court for permission to amend their complaint, stating Musk was responsible for insider trading in DOGE while also claiming the token was a security under SEC requirements.