Musk did not commit pumping and dumping with Dogecoin, judge rules

Unfortunately for the plaintiffs, their claim fell flat after a federal judge in New York dismissed the case on Thursday. In a terse two-page ruling, US District Judge Alvin Hellerstein summarized the various claims Musk made about Dogecoin on Twitter (now X). These included that:

“Dogecoin could be his favorite currency and that he bought something for his son, that Dogecoin is the cryptocurrency of the people and the future currency of the Earth, that Dogecoin could become the standard for the global financial system and the currency of the Internet (and ) that Tesla vehicles could be purchased with Dogecoin.”

Even though Musk praised Dogecoin on the moon, Hellerstein found his statements to be nothing more than “fluffy” — a word judges have used for more than a century to describe hype-making claims, and that it did not amount to serious promises. .

The legal concept of puffery was first expressed by a UK Court of Appeal in 1892 in a case involving the manufacturer of a ‘smoke ball’ that promised to prevent influenza and offered a £100 reward sterling to anyone who contracted it while using it. the product. A judge in the case questioned whether the promise was a “mere puff” before concluding it was not.

In the case of Dogecoin, however, the judge concluded that Musk’s claims were nothing more than fluff.

“No reasonable investor could rely on them,” Hellerstein wrote, adding that they could not form the basis of a lawsuit. The judge added that he could not understand related allegations that Musk and Tesla engaged in a “pump and dump.”

The ruling prompted fans of Musk and Dogecoin to post celebratory memes on X:

Elon Musk has just won the dismissal of a lengthy, baseless, multi-billion dollar lawsuit accusing him of defrauding Dogecoin and engaging in insider trading. 🔥 pic.twitter.com/ppcXEEJJQb

— Sir Doge of the Coin ⚔️ (@dogeofficialceo) August 29, 2024

The judge threw out the case with prejudice, meaning the plaintiffs no longer have a chance to amend the lawsuit in hopes of keeping it. Johnson’s lawyer, however, has vowed to appeal the decision — though it may be a long shot..

Dogecoin, meanwhile, remains a fixture on the crypto scene, with a market cap of over $14 billion, making it the eighth largest cryptocurrency. The coin is currently trading around 10¢ — a far cry from the 73¢ it touched in May 2021, when word spread that Musk would be talking about it. Saturday Night Live.