Whereas Elon Musk have supported heavily in the past dog coin doge/usd Cryptocurrency — a meme that has wide appeal — and while its tweets and mentions have caused the coin to boom, its endorsements have put it in jeopardy.
What happened: Musk’s lawyers have filed a petition in Manhattan federal court to dismiss a lawsuit that accuses Kasturi of Tesla The CEO of a pyramid scheme operating to promote Dogecoin, Reuters reported on Friday.
The lawsuit brought by Dogecoin investors is a “fictitious work of fiction” based on their “innocuous and often silly tweets” about the meme coin, lawyers reportedly filed in a court filing late Friday.
Musk’s lawyers also argued that the investors who filed the lawsuit did not explain how Musk intended to defraud anyone or what risks he had concealed.
“There is nothing illegal about tweeting in support of, or posting funny photos of, the legitimate cryptocurrency,” said lawyers for the billionaire, who has a market cap of nearly $10 billion.
“This Court should put a stop to the imagination of the plaintiff and dismiss the complaint.” he added.
Musk’s lawyers also objected to the investor’s claim that Dogecoin was a security.
See also: How to buy in Dogecoin (DOGE)
Why this is important: Dogecoin, launched in December 2013 by software engineers Jackson Palmer And billy marcus, Reached an all-time high of $0.737567 between May 8, 2021 Musk’s appearance on NBC’s “Saturday Night Live” show that year.
In their lawsuit, the plaintiffs accused Musk of intentionally driving the cryptocurrency’s price up more than 36,000% in two years, and then allowing it to crash. They additionally argue that the billionaire did this knowing full well that the currency had no intrinsic value.
In response to the lawsuit, Musk said in an interview with Bloomberg at the Qatar Economic Forum in 2022 that he did not ask people to invest in Dogecoin and that he only promised support for the cryptocurrency at the request of his employees.
Dogecoin is trading up 3.9% at $0.0770 Benzinga Pro Data.
Read further: Dogecoin Creator Criticizes DeFi Project Safemoon After Liquidity Pool Is Compromised