Tesla CEO and Dogecoin enthusiast, Elon Musk, is facing accusations of insider trading and market manipulation in a class action lawsuit filed in New York City. Interestingly, Robinhood wallets associated with the tech mogul reportedly underwent massive reshuffling of Dogecoin assets following the lawsuit. The timing of these transfers, amid significant events related to Musk or Twitter, has raised eyebrows among on-chain analysts.
The lawsuit claims that Musk and Tesla maintain control over multiple Dogecoin wallets. The plaintiffs allege that Musk sold $124 million worth of DOGE tokens in April after changing Twitter’s logo to that of Dogecoin’s. Musk has since responded, saying the amendment to the lawsuit is unwarranted, while U.S. District Judge Alvin Hellerstein stated he would likely allow the third amended complaint.
A BitInfoCharts-tagged Robinhood wallet known as “DPDLB” is frequently linked to Elon Musk. Analyst Lookonchain even shared evidence supporting the theory that the wallet belongs to the Tesla CEO. Following the lawsuit, a significant reshuffling of Dogecoin assets occurred, with over 9.3 billion DOGE transferred from “DPDLB” to “DDuXG” on June 1st. Additionally, “DPDLB” moved over 8 billion DOGE to “DDuXG” on May 22nd and 23rd.
Formerly the most extensive holder of Dogecoin, “DPDLBA,” held nearly 25.24% of the total supply in December, totaling to around $2.6 billion. CoinGape Media previously reported a massive transfer to “DDuXG,” potentially connected to Musk stepping down as Twitter’s CEO. “DEgDV” has now become the largest holder of Dogecoin, possessing 19.88 billion DOGE worth approximately $1.42 billion. This shift happened as “DDuXG” continued to transfer DOGE to the wallet, most recently moving 3.4 billion DOGE, which coincided with a Twitter-related event. Such transfers aligned with Elon Musk’s activities have led to multiple speculations.
Despite the ongoing controversy, DOGE’s price trades above $0.07 and has struggled to cross the $0.10 mark, currently standing at $0.071. As cryptocurrency investors keep an eye on these events, it’s crucial to stay informed and do thorough market research before making any investment decisions, given the unpredictability and rapidly changing conditions of the market.