It comes as Musk’s attorneys have argued that the controversial CEO has not tweeted anything that might be considered ‘illegal.’
Dogecoin investors accused Musk of operating a pyramid scheme using their cryptocurrency.
Yesterday morning, the blue bird emblem that serves as Twitter’s logo was changed with an image of a Shiba Inu. This change was made in reference to Dogecoin, the parody cryptocurrency that CEO Elon Musk is being sued for.
The controversial head of social media, who bought Twitter in a deal worth $44 billion last year, addressed the change on Monday afternoon. He Tweeted an image of a conversation from the previous year, in which another user recommended that Musk “simply buy Twitter” and “change the bird logo to a doge.”
After only two days, the new joke logo appeared on the site, and shortly after that, Elon Musk asked a judge to dismiss a $258 billion racketeering lawsuit accusing him of running a pyramid scheme to support the dogecoin. The lawsuit alleges that he supported the dogecoin through the use of dogecoins.
It is not yet apparent whether the altered logo was intended to be taken seriously and made permanent or whether it was purely sarcastic.
The lawsuit that was filed by investors of Dogecoin was referred to as a “fanciful piece of fiction” by Musk and the lawyers for Tesla. The case was filed because of the CEO’s “innocuous and often foolish Tweets.”
The attorneys stated that the investors never explained how Musk intended to defraud anyone or what risks he concealed, and that Musk’s statements such as “Dogecoin Rulz” and “no highs, no lows, only Doge” were too vague to support a fraud claim. The lawyers also stated that the investors never explained how Musk intended to defraud anyone.
“There is nothing unlawful about tweeting words of support for, or humorous photos about, a genuine cryptocurrency that continues to retain a market cap that is approximately $10 billion,” Musk’s lawyers stated. “There is nothing unlawful about tweeting words of support for, or funny photographs about,” “This court ought to put an end to plaintiffs’ delusion and throw out the complaint,” the argument goes.
The investors’ contention that Dogecoin met the qualifications of a security was another one that the attorneys refuted in a footnote.
Evan Spencer, the attorney for the investors, stated in an email stating the following: “We are more certain than ever that our case will be successful.”
Investors have accused Elon Musk, the second-richest person in the world according to Forbes, of artificially inflating the price of dogecoin by more than 36,000 percent over the course of two years and then allowing it to crash.
They claimed that this resulted in profits of billions of dollars at the expense of other investors in Dogecoin, despite the fact that Musk was aware that the currency lacked any inherent value.
Investors also alluded to Musk’s performance on a segment of NBC’s “Saturday Night Live” dubbed “Weekend Update,” in which he portrayed a bogus financial adviser and referred to Dogecoin as “a scam.”
The sum of $258 billion in damages is three times higher than the expected fall in the value of dogecoin’s market during the thirteen months prior to the filing of the case.
The Dogecoin Foundation, a charitable organisation, is also a defendant in this case and wants it to be dismissed.
Several legal actions have been taken as a direct result of Musk’s postings on Twitter, which he controls.
On February 3, a jury in San Francisco held him not responsible for tweeting in August 2018 that he had acquired finance to take Tesla private. This result brought him a legal triumph in the court system.
Over the course of the last day and a half, the price of the notoriously unstable cryptocurrency Dogecoin increased by almost 20% to approximately 9 cents.
It has been trading for slightly less than 8 cents as of the morning of Monday.
A joke between two software developers in 2013 resulted in the creation of the cryptocurrency known as dogecoin.
The name is a reference to the internet craze known as “doge,” which sprang to prominence a decade ago.