An analysis of one of the most debated controversies between cryptocurrencies and corporate power.
Elon Musk's figure has always been surrounded by innovation, controversy, and a remarkable ability to move markets with a single tweet. However, in recent years, his relationship with Dogecoin (DOGE) and his role in the U.S. government have raised deeper questions: could he have used cryptocurrency as a strategy to avoid multi-million dollar legal issues?
The following examines the facts based on reliable sources.
A high-caliber lawsuit: Dogecoin as a 'pyramid scheme'
In June 2022, the entrepreneur was sued alongside Tesla and SpaceX by investor Keith Johnson. The accusation, filed in a federal court in Manhattan, demanded $258 billion and alleged that Musk promoted Dogecoin knowing it had no intrinsic value. The plaintiff compared it to a pyramid scheme operation, arguing that Musk artificially inflated its value through his media influence.
However, this lawsuit was dismissed in August 2024. Judge Alvin Hellerstein concluded that Musk's statements were aspirational and did not constitute misleading claims in a legal context, temporarily closing that judicial chapter.
DOGE: Beyond cryptocurrency, a role in government
In an unexpected turn, Elon Musk was appointed in 2025 as the head of the Department of Government Efficiency (DOGE) during Donald Trump's administration. This position was officially created to cut public spending and optimize bureaucratic processes.
The decisions made by this department were controversial: mass layoffs in federal agencies, reduction of social programs, and restructuring that, according to critics, indirectly favored private companies, including Musk's own.
A report from the U.S. Senate estimated that Musk and his companies could be exposed to over $2.37 billion in legal and regulatory risks arising from these actions and potential conflicts of interest.
DOGE as a legal smoke screen?
While Musk's promotion of Dogecoin and his leadership in the government DOGE have been the subject of multiple questions, there is no conclusive legal evidence that he used this cryptocurrency to evade legal responsibilities.
What is clear is that his communication strategy, combined with his role in public administration, has generated collateral benefits that may have reduced the impact of certain legal processes, whether by influence, delay, or diversion of public and media attention.
Elon Musk remains a dominant player at the intersection of technology, finance, and politics. Although direct legal actions regarding Dogecoin have been dismissed by the courts, the ethical and legal debate about his behavior and potential conflicts of interest remains open.
This situation underscores the urgency of strengthening regulatory and transparency frameworks in the face of the growing power of public figures in decentralized markets like cryptocurrencies.