In a significant legal victory for Elon Musk, the high-profile lawsuit accusing him of manipulating Dogecoin’s price through a “pump and dump” scheme has been withdrawn. The class-action lawsuit, which sought $258 billion in damages, came to an end as lawyers from both sides filed a motion in Manhattan federal court to terminate the case. U.S. District Judge Alvin K. Hellerstein had previously dismissed the case in August, ruling that Musk’s statements about Dogecoin, including calling it “the future currency of Earth,” were merely “aspirational and puffery” rather than fraudulent manipulation.
The resolution marks the end of a contentious legal battle that began in 2022, with allegations centered around Musk’s public statements, social media posts, and even his appearance on “Saturday Night Live.” The case sparked additional controversy when investor lawyer Evan Spencer accused Tesla’s legal team of intimidation tactics, while Musk’s team countered by seeking sanctions against Spencer for what they deemed a frivolous lawsuit. The dismissal includes dropping all pending sanctions motions and appeals, effectively closing this chapter in Dogecoin’s volatile history.
Meanwhile, Dogecoin has found new momentum, surging over 83% to reach $0.36, partly driven by Musk’s recent appointment to co-lead the proposed Department of Government Efficiency (D.O.G.E.) in President-elect Trump’s administration. The initiative, whose acronym playfully references the cryptocurrency, aims to implement structural reforms and address inefficiencies in federal government spending. This development, combined with the lawsuit’s dismissal, has reinforced Musk’s influence in both the cryptocurrency space and public sector reform.
