Elon Musk accused of insider trading after changing Twitter logo to Shiba Inu

Jun 2 2023, 4:53 pm

A massive class-action lawsuit faced by Elon Musk just got much worse. The SpaceX CEO is now facing new accusations of manipulating the cryptocurrency market.

Netizens might remember when the Twitter logo changed to a Shiba Inu in early April. The Shiba Inu is a logo for Dogecoin, a cryptocurrency Musk frequently talks about on his social media.

That brief change is part of the reason Musk, who once described himself as “The Dogefather,” is now in hotter water with Dogecoin investors.

Investors filed to make amendments to the class-action lawsuit in Manhattan on Wednesday. In their motion, they said that Musk had manipulated the market by promoting Dogecoin, leading to Musk and his company, Tesla, wrongfully profiting “to the tune of billions of dollars on the backs of millions of working Americans.”

“This includes Defendant Musk’s act of posting the Dogecoin Shiba Inu symbol on the Twitter homepage for three days in April 2022, spiking the price 30%, only to cause the price to fall when he restored the Twitter blue bird logo,” the court document reads.

When Twitter’s logo changed to a Shiba Inu, some users pointed out that it felt like market manipulation early on. In response, Musk shared a screenshot of his interaction with a Twitter user, which led to the change, implying that it wasn’t that deep.

The plaintiffs filed their first complaint with the court on June 16, 2022. They want to remove the Dogecoin Foundation entirely from the suit and fight independently.

The investors also alleged that they’d recently uncovered specific large Dogecoin wallets belonging to Musk or his company Tesla.

Meanwhile, according to Bloomberg’s Billionaire Index, the 52-year-old just returned to being the wealthiest person on earth.

His net worth is US $195 billion (CND $262.2 billion).

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