CRStoken.com requested SEC and FBI consider initiating an investigation into potential market manipulation in cryptocurrency markets by Mr. Elon Musk. The organization also requested House Financial Services Committee to take the case under its control.
The research made by CRStoken.com indicates that Mr. Musk’s public statements and tweets have had immediate and measurable effects on the prices of major cryptocurrencies, including Bitcoin (BTC) and Dogecoin (DOGE).
Specifically:
DOGE experienced price drops of up to 30.69% immediately following Musk’s SNL appearance, while BTC saw drops of 12.95% and 11.99% after specific tweets regarding Tesla’s stance on Bitcoin and environmental concerns.
Detailed statistical analysis (bootstrap analysis) shows that these movements are highly unlikely to have occurred due to ordinary market fluctuations, with probabilities ranging from 0.2% to 0.32%, effectively ruling out random market behavior. It’s an abnormal price drop.
Market data shows that other cryptocurrencies have not seen abnormal price declines at the same time.
On-chain transaction data show no coordinated selling or accumulation by large holders (“whales”) prior to these tweets, indicating that the price movements were triggered by Musk’s statements rather than market dynamics.
Network-level metrics for DOGE and BTC (hashrate, transaction volume, transaction fees, block times) remained normal during these events, ruling out technical failures as a cause of the price movements.
Based on market capitalization data, the total estimated loss to cryptocurrency investors from these tweets is approximately $136 billion. This loss exceeds the market capitalization of many of the world’s largest companies and the GDP of a majority of countries worldwide.
We believe there is compelling evidence to suggest that these actions constitute market manipulation, rather than mere personal opinion or commentary. Mr. Musk’s status as CEO of publicly traded companies, combined with his massive social media reach, makes his statements function as de facto market-moving events.
Given the scale of potential harm to retail and institutional investors alike, we urge your office to consider investigating these events and assessing whether existing US laws apply.
Files with calculations, as well as explanations of the calculations, are available via link: https://drive.google.com/drive/folders/1e7iI6mReed1l4OyclhLgNar4ETTeG1Ir?usp=drive_link
