Fresh evidence has come to light in an amended legal case filed on May 31, shedding further light on Elon Musk’s crypto trading and promotional activities. The latest filing presents compelling information regarding Musk’s alleged market manipulation practices, focusing on his involvement with cryptocurrencies such as Dogecoin and Bitcoin.

A Twitter Logo Stunt with Far-Reaching Implications

Plaintiffs have highlighted an intriguing incident in the filing, referring to the temporary replacement of Twitter’s bird logo with the Dogecoin logo by Elon Musk. This unusual act coincided with a notable 30% surge in DOGE prices, followed by a subsequent decline once the original logo was restored. While the filing correctly notes that this logo change occurred in April 2023, not April 2022 as initially stated, it remains significant due to its correlation with substantial market fluctuations.

Allegations of Insider Trading and Fiduciary Relationship Surface

The amended filing puts forth allegations that Elon Musk has assumed responsibility for the “Dogecoin enterprise as a whole” and emphasizes the existence of a fiduciary relationship between him and the asset. This fiduciary relationship is a key factor in supporting the claim of insider trading. Additionally, the filing contends that Dogecoin should be classified as a security under the Exchange Act. Notably, it also reveals the identification of the Dogecoin “whale” wallets associated with Musk and Tesla.

Dogecoin: From Meme Coin to Security under the Exchange Act

Expanding on the previous point, the amended filing asserts that Dogecoin meets the criteria to be considered a security under the Exchange Act. This reclassification amplifies the case against Musk, suggesting that his involvement with Dogecoin may face scrutiny under broader regulatory frameworks beyond cryptocurrency-specific regulations.

Unraveling Alleged Bitcoin Market Manipulation

In addition to Dogecoin, the filing raises allegations of market manipulation by Elon Musk during Tesla’s Bitcoin trades. Tesla has been actively engaged in buying and selling Bitcoin since 2021. The newfound evidence presents an opportunity to scrutinize potential market manipulation within the context of Bitcoin transactions involving Tesla.

Removal of The Dogecoin Foundation from Defendants’ List

The amendment seeks to eliminate The Dogecoin Foundation as a defendant in the case. According to separate reports from Reuters, the judge overseeing the case has granted this request, shifting the focus primarily onto Musk and Tesla’s alleged involvement and responsibility.

Plaintiffs Persist: Countering the Dismissal Attempt

These latest developments follow previous events in the ongoing case of Johnson et al v. Musk et al, which was initiated in June 2022, with the plaintiffs seeking $258 billion in compensation. In an attempt to dismiss the case, Musk and Tesla submitted their motion in April 2023. The amended filing aims to counter the dismissal request by introducing new facts and evidence, presenting a strong argument to validate the plaintiffs’ claims.

Amended Complaint Gains Favorable Reception from U.S. Judge

As per Reuters, the U.S. judge overseeing the case has indicated a likelihood of approving the amended complaint, marking its third amendment. This positive reception signifies that the plaintiffs’ efforts to bolster their case with new evidence and facts have resonated with the judge, potentially paving the way for further legal proceedings against Elon Musk and Tesla.