In a class action lawsuit filed in New York City, Tesla CEO and Dogecoin enthusiast Elon Musk is accused of insider trading and market manipulation. The lawsuit coincides with significant reshuffling of Dogecoin assets in Robinhood wallets, which are often associated with Musk. On-chain analysts have raised questions regarding the timing of Dogecoin transfers during major events related to Musk or Twitter.
According to the lawsuit, Musk and Tesla allegedly control multiple Dogecoin wallets. Investors claim that Musk sold $124 million worth of DOGE tokens in April after changing Twitter’s logo to Dogecoin’s logo. Musk has expressed his disagreement with the amended lawsuit, while U.S. District Judge Alvin Hellerstein indicated that he is likely to allow the third amended complaint, suggesting that the defendants won’t face prejudice.
The wallet tagged as “DPDLB” on BitInfoCharts, often linked to Elon Musk, has been subject to scrutiny. Analyst Lookonchain has presented evidence supporting the claim that the wallet belongs to Musk. Notably, “DH5ya” transferred nearly all its DOGE to “DPDLB.”
Following the lawsuit, a substantial reshuffling of Dogecoin occurred, with over 9.3 billion DOGE transferred from “DPDLB” to “DDuXG” on June 1. Additionally, “DPDLB” transferred more than 8 billion DOGE to “DDuXG” on May 22 and 23. Initially, “DPDLBA” held the largest share of Dogecoin, accounting for almost 25.24% of the supply and holding approximately 35 billion DOGE worth $2.6 billion in December. Speculation arose when a significant transfer to “DDuXG” coincided with Elon Musk stepping down as CEO of Twitter.
Another wallet, “DEgDV,” has now become the largest holder of Dogecoin, with holdings of 19.88 billion DOGE worth 1.42 billion. This change came as “DDuXG” continued to transfer DOGE to this wallet. On June 2, over 5 billion DOGE was transferred to “DEgDV,” which now accounts for 14.24% of the total Dogecoin supply.
Recently, “DDuXG” moved 3.4 billion DOGE to “DEgDV” during a Twitter-related event, further fueling speculation surrounding Elon Musk’s involvement.
Despite the ongoing developments, the price of DOGE has been trading sideways above $0.07 and has struggled to surpass the $0.10 mark. At present, the price stands at $0.072. The situation surrounding Elon Musk and the alleged control of Dogecoin wallets continues to unfold, leaving the crypto community with lingering questions about the future of the popular digital asset.
Also Read: Elon Musk’s Dogecoin Warning to Investors
