A group of Dogecoin investors has asked to replace the class action lawsuit filed against Elon Musk for alleged token price manipulation.
In the lawsuit filed on May 31 in the US Southern District Court of New York, investors claimed that the purpose of Musk’s moves on Twitter was “cryptocurrency manipulation” and that Musk used it to profit from DOGE transactions. According to the complaint, Musk managed to profit from the asset by changing Twitter’s logo to DOGE.
Investors submitted their first complaints on the subject in June 2022. However, the first frame of the case was changed. They first filed a court amendment claiming that Musk was conducting an “inside trade” with Dogecoin. However, they even claimed that the token is a security under SEC standards.
“This is a securities fraud case resulting from the market manipulation and inseder trading of Elon Musk, the world’s richest man, who uses a popular culture phenomenon to promote himself and his companies, and to promote his own interests,” the complaint states.
Musk replaced the Twitter logo with DOGE on April 3.
Musk did not make a statement on the subject at the time of writing. Elon Musk is frequently on the agenda by tweeting about Dogecoin and other cryptocurrencies and increasing its value.
After Musk bought Twitter in October 2022, the platform’s value dropped by 33%. Elon Musk announced on May 12 that Linda Yaccarino, former head of global advertising and partnerships at NBCUniversal, will take over.