Tesla CEO Elon Musk has experienced a setback in the ongoing Dogecoin-related insider trading case as one of his key attorneys, Adam Gabor Mehes, has filed a motion to withdraw counsel. Mehes worked closely with Musk for over a year, actively participating in various legal proceedings.
A separate court filing revealed that Tesla’s legal team is bringing on board Allison Huebert, a former litigation associate at Quinn Emanuel. The attorney change follows the leaked letter from Musk’s legal team, where he denied ownership of the crypto wallets involved in suspicious Dogecoin trades. The reasons behind Mehes’ decision to withdraw counsel remain unclear.
Musk Faces Allegations of Pumping and Selling Dogecoin (DOGE)
Elon Musk is facing accusations from Dogecoin investors who claim that he manipulated the price of DOGE through his social media presence. The billionaire is further accused of selling his DOGE holdings during peak prices, allegedly earning $95 million from these transactions.
The complaint points to Dogecoin transactions that took place between April 3 and April 6, coinciding with Musk’s Twitter profile changing its logo to the Dogecoin emblem. Following this change, DOGE’s price surged by 30%. The plaintiff’s attorney, Evan Spencer, linked the transactions to digital wallets associated with Musk and Tesla.
In response, Musk’s attorney, Alex Spiro, refuted the claims made by Spencer, stating that there was no basis for alleging that the wallets belonged to Musk. Spiro firmly asserted, “You are wrong.”
According to the complaint, Musk’s wallet reportedly held over $25 billion worth of Dogecoin at its peak value. However, Musk vehemently denies all allegations. Currently, DOGE is trading at $0.06187, reflecting a 0.4% increase in the last 24 hours.