In the ongoing legal battle over Dogecoin (DOGE), Elon Musk's legal team has fired back at allegations that the Tesla CEO is a secret whale manipulating the meme coin market. According to a letter obtained by the New York Post, Musk’s attorney Alex Spiro explicitly denied that Musk owns the wallets identified by the plaintiffs, calling their assertions “without basis.” Spiro’s missive, addressed to plaintiff lawyer Evan Spencer, states bluntly: “You are wrong.”
Letter from Musk’s Attorney: ‘No Basis’ for Wallet Claims
The letter, dated early June 2023, responds to the plaintiffs' third amended complaint, which alleges that Musk and his companies used Twitter posts and the change of the platform's logo to the Dogecoin symbol to artificially inflate the token's price, only to sell off holdings at the peak. Spiro argued that the only evidence the plaintiffs have is that the wallets in question sold DOGE during a period when prices were up, which “does not connect them to Musk.” He further stated: “You specifically allege, without basis, that the following wallets ‘belong’ to defendants. You are wrong.”
The letter challenges the very foundation of the case, which accuses Musk of orchestrating a “crypto pyramid scheme” that cost investors an estimated $86 billion. The plaintiffs initially filed the lawsuit in June 2022, claiming Musk’s tweets and actions constituted market manipulation. Spencer, representing the plaintiff class, responded to the New York Post by saying: “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.”
Background: Musk’s Previous Attempts to Dismiss the Case
In April 2023, Musk’s legal team moved to dismiss the lawsuit, arguing that simply tweeting about a legitimate cryptocurrency does not constitute illegal activity. A federal judge, however, allowed the case to proceed, citing sufficient allegations of possible market manipulation. Musk has long been a vocal proponent of Dogecoin, frequently promoting it on social media and even briefly accepting it as payment for Tesla merchandise. These actions have linked his personal brand to DOGE’s price volatility, making him a target for investor lawsuits when the token’s value declines.
This latest development marks the first time Musk’s representatives have directly denied ownership of specific wallets. Industry observers note that while the denial may weaken the plaintiffs’ narrative, it does not automatically dismiss the case. Legal experts anticipate a lengthy discovery phase, during which blockchain analytics could be used to trace wallet transactions. If the plaintiffs fail to produce concrete evidence linking Musk to the wallets, the court may rule in his favor. Alternatively, any new evidence could deepen the controversy.
Market Impact and Next Steps
As of press time, Dogecoin’s price remained relatively stable, suggesting that markets have largely priced in the legal uncertainty. The case highlights the broader tension between celebrity endorsements and cryptocurrency regulation. With both sides dug in, the outcome could set a precedent for how similar lawsuits against influential figures are handled in the future. Investors are advised to monitor the proceedings closely, as a ruling either way could trigger significant price movements.