Elon Musk Tells Court Most Cryptocurrencies Are Scams
Elon Musk stated during the OpenAI trial that most cryptocurrencies are fraudulent projects, sparking backlash from the crypto community given his own deep ties to digital assets.
Musk Dismisses Most Crypto as Fraud at OpenAI Hearing
Tesla and SpaceX CEO Elon Musk testified during the Oakland court proceedings against OpenAI that he views the vast majority of cryptocurrencies as fraudulent schemes. The remarks, reported by Fortune, came in response to questions about his stance on digital assets.
The topic surfaced during a discussion about OpenAI's 2018 plans to conduct an ICO and issue its own token as a fundraising mechanism. Musk acknowledged that some cryptocurrencies carry genuine value but stated that most are simply scams.
Why This Matters
Musk's statement stands in stark contrast to his own track record with digital assets. In 2021, Tesla became one of the first publicly traded companies to add Bitcoin to its corporate treasury, purchasing $1.5 billion worth of BTC — an investment Musk himself described as risky at the time.
That same year, Tesla began accepting Bitcoin as payment for electric vehicles. Musk also floated the idea of accepting Dogecoin, a meme coin he repeatedly promoted through social media posts. The Bitcoin payment option was later suspended, with the company citing environmental concerns related to mining.
Currently, Tesla holds more than 11,000 BTC valued at $886 million, while SpaceX maintains 8,285 BTC worth $638 million, according to Arkham data. Combined, Musk's companies sit on over $1.5 billion in Bitcoin.
Community Pushback
The crypto community responded with sharp criticism, accusing Musk of hypocrisy.
"The man who pumped Dogecoin to a $90 billion market cap calling crypto scams 🤦🏾♂️ The audacity has no ceiling…" — Marcus (@freshesmarcus), original post
Marcus pointed to the dramatic price surges DOGE experienced each time Musk publicly mentioned the coin, calling his remarks audacious given that history.
Others, however, sided with the billionaire's assessment, arguing that only Bitcoin, Ethereum, and a select few altcoins possess genuine utility.
"Lol did you really need Elon musk to tell you this? I'd say anyone with a 90 IQ can see that. Bitcoin, Eth, and a handful of other crypto have use cases and will survive and thrive. Most are garbage 99.9%" — Dwayne Bennett (@DwayneNHL), original post
X Platform Continues Crypto Integration
Despite the harsh rhetoric, Musk's social media platform X has been actively building out crypto-related features. In mid-April, the platform launched Cashtags — a tool for tracking cryptocurrency prices directly within the app. Musk had also previously announced X Money, a digital wallet designed for peer-to-peer transfers and payments.
In late March, X hired a former designer from Base and Aave to work on the platform, further signaling its commitment to the crypto space.
The disconnect between Musk's courtroom statements and his companies' continued engagement with digital assets creates an ambiguous signal for market participants navigating an already volatile landscape.
Frequently Asked Questions
What did Elon Musk say about crypto at the OpenAI trial?
During testimony in Oakland court, Musk stated that while some cryptocurrencies have value, most are simply scams. The question arose in the context of discussing OpenAI's 2018 ICO plans.
How much Bitcoin do Tesla and SpaceX hold?
Tesla holds over 11,000 BTC worth $886 million, and SpaceX holds 8,285 BTC valued at $638 million, according to Arkham data. Together, Musk's companies hold more than $1.5 billion in Bitcoin.
Why is Musk being called a hypocrite over his crypto comments?
Critics point out that Musk repeatedly promoted Dogecoin, pumping its market cap to $90 billion. Tesla also invested $1.5 billion in Bitcoin in 2021 and briefly accepted it as payment for vehicles.
What crypto features has X platform launched?
X launched Cashtags in mid-April for tracking cryptocurrency prices. Musk also announced X Money, a digital wallet for peer-to-peer transfers and payments.
Why did Tesla stop accepting Bitcoin payments?
Tesla suspended Bitcoin payments a few months after launching the option in 2021, citing environmental concerns about the energy consumption of Bitcoin mining.
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