(CTN NEWS) – Elon Musk asked a US judge to dismiss a $258 billion racketeering lawsuit against him on Friday, alleging that he ran a pyramid scheme to fund Dogecoin.
In a late-night filing in Manhattan federal court, attorneys for Musk and his electric car business Tesla Inc referred to the lawsuit by Dogecoin investors as a “fanciful work of fiction” based on Musk’s “innocent and frequently silly tweets” about Dogecoin.
According to the lawyers, the investors failed to specify how Musk meant to defraud anyone or the risks he concealed, and his statements like “Dogecoin Rulz” and “no highs, no lows, only Doge” were too ambiguous to serve as evidence of fraud.
The lawyers Rejected Dogecoin’s Claim That It Was Security
According to Musk’s attorneys, posting encouragement for or amusing images of a legitimate cryptocurrency with a market cap of close to $10 billion is not unlawful.
This court should dismiss the lawsuit and put an end to the plaintiffs’ fantasy.
In a footnote, the attorneys debunked the clients’ assertion that Dogecoin was security.
Attorney for the investors Evan Spencer wrote in an email, “We are more confident than ever that our case will be successful.”
Investors charged Musk, the second-richest individual in the world, with purposefully inflating Dogecoin’s price by more than 36,000% over two years before allowing it to crash.
They asserted that despite Musk’s knowledge that the currency lacked intrinsic worth, this led to billions of dollars in profit at the expense of other Dogecoin investors.
Investors also cited Musk’s presence on “Saturday Night Live”‘s “Weekend Update” segment, where he referred to Dogecoin as “a hustle” while posing as a fictional financial expert.
In comparison, the estimated drop in Dogecoin’s market value over the 13 months prior to the lawsuit’s filing is three times the $258 billion in damages.
A non-profit organization called the Dogecoin Foundation is another respondent who is asking for the case to be dropped.
Musk owns the social media platform Twitter, and several lawsuits have been brought in reaction to his tweets.
He was ruled not at fault by a San Francisco jury on February 3 for tweeting in August 2018 that he had raised money to take Tesla private.
Elon Musk To Visit China
According to two individuals familiar with the planning for the trip, Elon Musk intends to travel to China as early as April and expects to meet with Premier Li Qiang.
One of the sources claims that Li Qiang’s availability will determine exactly when the journey will take place.
Requests for feedback on Tesla and China’s State Council Information Office on Friday went unanswered.
China is Tesla’s second-largest market after the United States, and its Shanghai plant serves as the company’s main manufacturing base.
This would be Musk’s first visit to China following the COVID-19 outbreak and Xi Jinping’s election to a third term as China’s leader.
Li oversaw the building and opening of the Tesla plant while serving as Shanghai’s party secretary prior to taking office as premier in March.
Early in 2020, when Musk made news for dancing on stage at a factory event in Shanghai, he made his most recent trip to China. However, he has continued to deliver talks online at conferences like the World Internet Conference in China.
Li and Musk first connected at the 2019 opening of the Shanghai factory.
In an online conference in 2020, Musk reportedly expressed his gratitude to the Shanghai Party Secretary for helping maintain plant operations throughout the pandemic’s outbreak.
In addition, Musk’s planned trip falls in line with China’s attempts to draw in more foreign capital to support its economy after three years of COVID restrictions have taken a toll.
Li has been leading that endeavor, speaking at conferences attended by Tim Cook of Apple Inc. and Albert Bourla of Pfizer over the past week.
The sources did not clarify what Musk intends to debate or carry out in China.
Tesla Faces Several Challenges, Including Delays In Its Shanghai Plant’s Capacity Expansion Plans
Delays in Tesla’s plans to more than double manufacturing capacity at its Shanghai plant are just one of the problems the company is facing.
Due to concerns about the cameras installed on the vehicles, Tesla vehicles have also been prohibited from Chinese military bases and political gatherings.
The company still waits for Beijing’s permission before launching complete self-driving technology in China.
The biggest economy outside the US is China. Reuters reports that Twitter’s income streams, which Musk paid $44 billion for last year.
The sources claim that Twitter’s operations in China have led to internal conflicts between teams eager to take advantage of sales possibilities and others worried about the perception of doing business with government-affiliated organizations during escalating hostilities between Beijing and Washington.
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