Elon Musk testifies in court: Aside from Bitcoin, most cryptocurrencies are scams

During a court trial with OpenAI, Elon Musk said that most cryptocurrencies are scams, but that some still have value. At the same time, he revealed legal disputes between the two sides over the non-profit mission and the shift to a for-profit model.

During a lawsuit hearing with OpenAI, Tesla CEO Elon Musk was asked about an ICO funding concept that OpenAI had discussed in its early days, and he unexpectedly made comments on the cryptocurrency market. He said, “Some cryptocurrencies have value, but most are scams.” Many veterans who went through the ICO era may sigh here: if OpenAI had raised funds through an ICO back then, would it have become one of the most successful cryptocurrencies, or would it have inevitably been driven by speculation and ended in a bubble?

OpenAI Tried to Raise Funds via ICO

According to Fortune, during a court trial with OpenAI, Tesla CEO Elon Musk was asked about an ICO funding concept that OpenAI had discussed in its early days, and he unexpectedly commented on the cryptocurrency market. He said, “Some cryptocurrencies have value, but most are scams.” These remarks also prompted the public to reexamine Musk’s conflicting stance toward Bitcoin, Dogecoin, and the crypto market over the past few years.

The core of this lawsuit is not cryptocurrencies, but whether OpenAI has deviated from its non-profit mission at the time of its founding. Musk accused OpenAI of straying from its original intent to “develop AI for the benefit of all humanity” after it established deep commercial cooperation with Microsoft. He even said in court that OpenAI and people like Sam Altman “stole a charitable organization.” OpenAI countered that Musk had long known the company might shift to a for-profit structure, and argued that his lawsuit is related to competitive interests with its AI subsidiary, xAI.

Musk’s comments on cryptocurrencies came from questions in court about OpenAI’s 2018 ICO funding plan. ICOs were the hottest fundraising method in the crypto market from 2017 to 2018. Many projects raised capital quickly by issuing tokens, but they also came with widespread scams, lack of transparency, and regulatory disputes. Musk’s statements in court effectively acknowledged that cryptocurrencies are not entirely without value, while also classifying most tokens in the market as speculative products lacking substantive fundamentals.

Many veterans who went through the ICO era may sigh here: if OpenAI had raised funds through an ICO back then, would it have become one of the most successful cryptocurrencies, or would it have inevitably been driven by speculation and ended in a bubble?

The Twisted Story Between Musk and Bitcoin and Dogecoin

However, Musk’s relationship with cryptocurrencies has long been full of drama. During the pandemic, he publicly supported Bitcoin and Dogecoin multiple times, and even led Tesla to announce in 2021 that it would spend $1.5 billion to buy Bitcoin, sparking a trend of corporate treasury allocations toward BTC. Later, in 2022, Tesla sold about 75% of its Bitcoin holdings. At the time, Musk explained that the main reason was to increase cash reserves amid China’s COVID lockdowns and disruptions to the Shanghai factory.

Afterward, the deal also became a focus of market discussion. Because Bitcoin rebounded significantly in the subsequent bull market, Tesla’s early sold positions were seen as having missed out on massive potential gains. According to market-tracking data, Tesla still holds about 11,509 Bitcoins. As of the first quarter of 2026, the value of its holdings had fallen to about $786 million due to Bitcoin’s decline, but it remained higher than the estimated original cost of about $386 million.

In other words, Musk’s current remarks in court criticizing “most cryptocurrencies are scams” do not mean he completely rejects Bitcoin or crypto assets. Rather, it seems he is distinguishing a small number of assets such as Bitcoin from the many speculative tokens. For the market, though, the statement still carries symbolic significance: a tech billionaire who once sent Dogecoin surging, led Tesla to buy Bitcoin, and once caused major market volatility with his tweets—now, during an OpenAI court case, has openly acknowledged that “most of the crypto market is a scam.”

Further Reading
Elon Musk and Altman’s Court Hearing Day 1: Organizing Both Sides’ Statements and Lawyer Debates—Understand the Power Struggle at OpenAI

• This article is reprinted with permission from: 《Chain News》
• Original Title: 《Elon Musk Testifies in Court: Beyond Bitcoin, Most Cryptocurrencies Are Scams》
• Original Author: Neo