In a significant development within the ongoing Dogecoin (DOGE) class-action lawsuit, Elon Musk’s legal team has formally denied allegations that the Tesla CEO is a “Dogecoin whale” controlling specific wallets. Attorney Alex Spiro, representing Musk, sent a letter to the plaintiffs’ lawyer Evan Spencer, asserting that the accusations linking Musk to particular wallet addresses are “without basis” and that the plaintiffs “are wrong.”
Details of the Legal Letter
According to the letter obtained by the New York Post, Spiro wrote: “You specifically allege, without basis, that the following wallets ‘belong’ to defendants. You are wrong. The sole basis for your claim is that these wallets sold Dogecoin at a time when, according to the third amended complaint, prices were up.” The letter directly challenges the foundation of the plaintiffs’ insider trading and market manipulation allegations, which were expanded in early June 2023.
The amended complaint, filed in June 2022 and updated multiple times, accuses Musk of orchestrating a “crypto pyramid scheme” with DOGE, profiting at the expense of retail investors. The plaintiffs claim that Musk’s actions—including changing Twitter’s logo to the Dogecoin symbol—constituted pump-and-dump maneuvers that caused collective losses of approximately $86 billion. The lawsuit names Musk, Tesla, and SpaceX as defendants.
Musk’s Prior Motion to Dismiss
In April 2023, Musk’s legal team moved to have the case dismissed, arguing that his tweets about Dogecoin were protected speech and did not constitute securities fraud. The judge has not yet ruled on that motion. Now, with the new letter, Musk’s attorney is pushing back on the specific claim that he personally held the wallets in question. Legal experts note that proving wallet ownership is a critical hurdle for the plaintiffs, as blockchain analysis alone may not be sufficient to link addresses to a specific individual without additional evidence.
Plaintiffs’ attorney Evan Spencer remains undeterred. In a statement to the press, he said: “This case will be fought in court, not the media. The plaintiffs and I are more confident than ever that the case will be successful.” Spencer emphasized that the lawsuit would proceed through discovery, where they intend to unearth transactional records and communications that could tie Musk to the alleged wallets.
Industry Reactions and Implications
The Dogecoin community has closely watched the case, as Musk has been a prominent supporter of the meme coin. If the plaintiffs succeed, it could set a precedent for holding influencers liable for their social media activity affecting cryptocurrency markets. Conversely, a dismissal could reinforce free speech protections for crypto commentary. The next court hearing is expected to address both the motion to dismiss and the wallet ownership dispute.
As the legal battle intensifies, both sides are preparing for prolonged litigation. Musk’s denial of being a Dogecoin whale is a strategic move to undermine the plaintiffs’ narrative, but the burden of proof remains on the accusers to establish a direct link. The outcome may hinge on whether the plaintiffs can present concrete evidence beyond wallet transaction timestamps.