Elon Musk reportedly stated that most cryptocurrencies are scams while testifying in his ongoing legal battle with OpenAI.
The revelation has sparked fresh debate across both the crypto and tech communities, especially as previously undisclosed discussions about a potential OpenAI ICO (Initial Coin Offering) surfaced during the proceedings.
According to reports shared by journalist Mike Isaac, Musk made the comments under oath, adding weight to his long-standing skepticism toward the broader cryptocurrency market.
While Musk has often influenced crypto sentiment through his public statements, this testimony marks one of his most direct criticisms in a legal setting.
Musk’s Complex Relationship with Crypto
Elon Musk has a mixed and sometimes confusing relationship with cryptocurrency. On one hand, he has clearly said that he owns popular digital coins like Bitcoin, Ethereum, and Dogecoin.
Among these, Dogecoin is his favorite, and he often talks about it on social media, which has helped increase its popularity.
On the other hand, Musk has also criticized the crypto market, saying that many coins may not be trustworthy. His company, Tesla, also supports crypto. Tesla owns Bitcoin and has allowed customers to buy some products using Dogecoin.
This creates a mixed message. While Musk supports some cryptocurrencies, he also warns people to be careful. This is why many people are still unsure about his true opinion on crypto.
Tesla’s Bitcoin Holdings and Market Impact
Tesla’s financial disclosures reveal that the company retained its entire holding of 11,509 Bitcoin through the first quarter of 2026.
This came during a volatile period when Bitcoin’s price dropped approximately 22%, temporarily reducing the value of Tesla’s holdings from nearly $1 billion to around $786 million before partially recovering.
Notably, Tesla has not made significant adjustments to its crypto portfolio since early 2025. This stability follows a major decision in 2022 when the company sold about 75% of its Bitcoin holdings, a move that surprised many investors at the time.
The current strategy suggests a more cautious and long-term approach to crypto exposure.
OpenAI Lawsuit Takes Center Stage
The main reason behind Musk’s comments is his ongoing legal fight with OpenAI and its CEO Sam Altman. The case is currently being heard in California and focuses on how OpenAI is being run and what direction it is taking in the future.
Elon Musk claims that OpenAI has moved away from its original goal of being a non-profit organization. He believes the company changed into a profit-focused business and built close ties with Microsoft, which goes against the original agreement.
OpenAI does not agree with Musk’s claims. The company says that Musk already knew about these changes and had accepted the idea of restructuring to help OpenAI grow and get funding. This disagreement has now turned into a major court case that could impact the future of the AI industry.
Jury Sentiment and Trial Stakes
The trial has just started, and during jury selection, people had mixed opinions about Elon Musk. Some jurors were not very positive about him, but they still promised to stay fair and make decisions based only on the facts.
The trial is expected to last approximately three weeks and carries enormous stakes. Musk is reportedly seeking major changes, including the removal of OpenAI’s current leadership, a reversal of its corporate restructuring, and damages exceeding $134 billion.
Meanwhile, OpenAI is preparing for a potential IPO, adding further urgency and complexity to the proceedings.
See Also: Elon Musk Plans SpaceX Mission to Take Dogecoin to Moon next year
OpenAI ICO Speculation Adds New Twist
One of the most intriguing revelations from the trial is the discussion of a potential ICO by OpenAI. While concrete details remain scarce, the mere idea of a tokenized fundraising model tied to a leading AI organization has generated strong interest across both tech and crypto communities.
Such a move could have marked a major convergence between artificial intelligence and blockchain innovation, potentially reshaping how advanced technologies are funded. However, Elon Musk’s sharp criticism of cryptocurrencies during testimony adds complexity to the narrative.
His stance that most crypto coins are scams raises important questions about whether he supported, opposed, or distanced himself from these early ICO discussions within OpenAI.
More: Elon Musk Animates Bitcoin Waifu After Viral Fan Request
Broader Implications for Crypto and AI
Elon Musk’s courtroom remarks could create fresh volatility in the crypto market, especially given his strong influence on investor sentiment.
His claim that many digital assets lack legitimacy may strengthen concerns among regulators and institutional investors, potentially slowing mainstream adoption.
It brings renewed focus to issues like transparency, project credibility, and long-term sustainability within the crypto ecosystem. the legal clash with OpenAI highlights growing tensions in the AI sector.
As companies push boundaries in artificial intelligence, debates around governance, ethical responsibility, and funding structures are becoming more intense.
The outcome of this case could set important precedents for how future AI organizations are built, funded, and regulated in an increasingly competitive landscape.
