30s Summary

Elon Musk and Tesla were sued over allegedly manipulating Dogecoin’s price in 2022. Plaintiffs wanted $258 billion, claiming Musk’s social media and TV hype were calculated market moves. In 2024, they withdrew the lawsuit, and lawyers gave up the rights to appeal. The parties agreed not to further penalize each other. However, the U.S. District Judge Alvin K. Hellerstein’s approval is required to finalize the case’s closure. Musk, who referred to the claims as fabricated, hinted in 2024 that his company might start accepting Dogecoin as payment.

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In 2022, a hefty lawsuit was tossed at Elon Musk and his electric car company, Tesla. But guess what? It wasn’t about a car mishap or a factory blunder. It was all about Dogecoin, a kind of cryptocurrency known as a meme coin. The people who took Musk and Tesla to court claimed Musk was playing puppet master with Dogecoin’s price by hyping it up on social media and TV. Come November 14, 2024, they decided to back off and withdrew the lawsuit.

In the legal world, this means they agreed to stop their case against Musk and Tesla, and they won’t try to get any sort of compensation after the judgment. Plus, the lawyers who represented the investors who had bet on Dogecoin dropped their rights to appeal the case in any U.S. court. Both sides also agreed to stop trying to penalize each other over the lawsuit.

But hang on, the court still needs to okay the shelving of this lawsuit. This approval has to come from a U.S. District Judge named Alvin K. Hellerstein. Once he gives the green light, this two-year-long legal drama will finally be over.

Let’s go back to when all this started. Dogecoin investors had taken Musk and his Tesla to court, asking for $258 billion. They believed Musk and Tesla were running a cryptocurrency pyramid scheme. According to them, Musk’s speech on Saturday Night Live where he called himself ‘The Dogefather’ as well as his online chatter about Dogecoin were all calculated moves to mess with the market.

In 2023, Musk and his legal eagles asked for the lawsuit to be dismissed, saying it was all just made up. They said, “there is nothing illegal in tweeting cool stuff or cracking jokes about a legit cryptocurrency that’s worth almost $10 billion”.

Fast forward to 2024; Musk hinted that his company might start accepting Dogecoin as payment for their cars.