Autor: dot-traders

• Plaintiffs have dropped their appeal in the Dogecoin lawsuit against Elon Musk.
• Judge Hellerstein in August ruled Musk’s public statements weren’t grounds for fraud claims.
• Both parties have withdrawn motions for sanctions.

Investors who had sued Elon Musk and his company Tesla for manipulating the cryptocurrency Dogecoin (DOGE) have withdrawn their appeal.

This marks the conclusion of a case that originally sought $258 billion in damages and centred on allegations of fraud and insider trading.

The Dogecoin lawsuit was dismissed in August

The lawsuit, filed by Dogecoin investors, claimed that Musk had used his influential public platform to artificially inflate the price of Dogecoin for personal gain. The investors pointed to his tweets, public appearances, and even an appearance on NBC’s “Saturday Night Live” as evidence of a pattern of market manipulation.

The investors argued that these activities were timed to boost Dogecoin’s value, allowing Musk to profit at their expense.

However, on August 29, US District Judge Alvin Hellerstein dismissed the case, stating that reasonable investors could not establish claims of securities fraud based solely on Musk’s public statements.

The judge reasoned that comments such as Musk’s assertion that Dogecoin was the “future currency of Earth” or could be “floated to the moon” by SpaceX were not credible grounds for claims of insider trading or fraud.

Following the dismissal, the investors filed an appeal and sought sanctions against Musk’s legal team, accusing them of misconduct. In response, Musk and Tesla filed their own motion to sanction the investors’ lawyers for pursuing what they labelled as a “frivolous” and constantly shifting lawsuit.

Appeal withdrawn, awaiting court approval

This week, both parties agreed to withdraw their respective motions and filed a stipulation to dismiss the case in Manhattan federal court. The withdrawal also included the investors’ request to drop sanctions against Musk’s lawyers.

The final resolution of the case now awaits formal approval by Judge Hellerstein.

This lawsuit’s end comes as Musk continues to wield considerable influence over the cryptocurrency world, which has seen volatility sparked by Donald Trump’s reelection as the 47^th US president.

Musk, who acquired Twitter in 2022 and rebranded it as X, has often been at the centre of both support and controversy surrounding cryptocurrencies, notably Dogecoin.

The post Investors withdraw appeal in Dogecoin lawsuit against Elon Musk appeared first on CoinJournal.

• Giancarlo said he’s not interested in any crypto role in the US Treasury
• Speculation has grown over who will replace SEC Chair Gary Gensler following Donald Trump’s re-election

Christopher Giancarlo, former CFTC chair, has denied rumors that he’s being considered to replace Gary Gensler as the head of the US Securities and Exchange Commission (SEC).

In a post on X, Giancarlo, known as Crypto Dad, said:

“I’ve made clear that I’ve already cleaned up [an] earlier Gary Gensler mess @CFTC and don’t want to have [to] do it again,” adding: “DC rumors that I’m interested in some #crypto role @USTreasury are also wrong.”

As for reports that I’m in mix to run @SECGov, I’ve made clear that I’ve already cleaned up earlier Gary Gensler mess @CFTC and don’t want to have do it again. DC rumors that I’m interested in some #crypto role @USTreasury are also wrong.

— Chris Giancarlo (@giancarloMKTS) November 14, 2024

Speculation over the future head of the SEC comes as Donald Trump promised to remove Gensler following his re-election to the White House earlier this month. Other possibilities for the role include Hester Peirce, an SEC commissioner, Paul Atkins, a former SEC commissioner, and Mark Uyeda, a current SEC commissioner.

Giancarlo served as a commissioner at the Commodity Futures Trading Commission (CFTC) between 2014 and 2019. In January 2017, he was designated as acting chair of the CFTC and in August 2017 he was confirmed to serve as the chair until 2019.

In 2020, he co-founded the Digital Dollar Project, a non-profit forum focused on “digital money innovations” and the benefits of a US central bank digital currency (CBDC).

Gensler has been a controversial figure in the crypto market. Back in 2022, he said in an interview that the agency was increasing its oversight on crypto. One of the cases this is noted is its ongoing legal battle with Ripple.

However, earlier this week, Gensler hinted at a possible departure from the agency during a speech at the PLI’s 56th Annual Institute on Securities Regulation. During it, he said: “It’s been a great honor to serve with [the SEC staff], doing the people’s work, and ensuring that our capital markets remain the best in the world.”

The post ‘Crypto Dad’ denies interest in becoming the next SEC chair appeared first on CoinJournal.