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

During a court hearing with OpenAI, Elon Musk said that most cryptocurrencies are scams, but some still have value. He also disclosed legal disputes between both parties over OpenAI’s non-profit mission and its shift toward a profit-making 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 offered commentary on the cryptocurrency market. He said, “Some cryptocurrencies have value, but most are scams.” Many veterans who experienced the ICO era might sigh at this: if OpenAI had raised funds through an ICO back then, would it have become one of the most successful cryptocurrencies, or would it have been unable to escape its speculative nature and ended up in a bubble?

OpenAI Tried to Raise Funds via ICO

According to Fortune, during a court 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 commented on the cryptocurrency market. He said, “Some cryptocurrencies have value, but most are scams.” These remarks also led the public to re-examine Musk’s contradictory 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 accuses OpenAI of straying from its original intent to “develop AI for the benefit of all humanity” after it entered into deep commercial cooperation with Microsoft. In court, he even said that OpenAI and people such as Sam Altman “stole a charitable organization.” OpenAI, however, counters that Musk already knew the company might shift to a for-profit structure, and argues that his lawsuit is related to competitive interests involving its AI company xAI.

Musk’s comments on cryptocurrencies came from the court’s questioning of OpenAI’s 2018 ICO funding plan. ICOs were the hottest fundraising model in the crypto market from 2017 to 2018. Many projects raised capital quickly by issuing tokens, but they were also accompanied by large numbers of scams, a lack of transparency, and regulatory controversies. In effect, Musk’s statements in court acknowledged that cryptocurrencies are not entirely without value, while also categorizing most tokens in the market as speculative products lacking real underlying substance.

Many veterans who experienced the ICO era might sigh at this: if OpenAI had raised funds through an ICO back then, would it have become one of the most successful cryptocurrencies, or would it have been unable to escape its speculative nature and ended up in a bubble?

Musk’s Twisted Story with Bitcoin and Dogecoin

However, Musk’s relationship with cryptocurrencies has long been full of drama. During the pandemic, he repeatedly and publicly supported Bitcoin and Dogecoin. He even led Tesla to announce in 2021 that it would spend $1.5 billion to buy Bitcoin, sparking a trend of corporate treasury allocations to BTC. Tesla later sold about 75% of its Bitcoin holdings in 2022. At the time, Musk explained that this was mainly to increase its cash position amid China’s COVID-19 lockdowns and the impact on the Shanghai factory.

Afterward, this deal also became a focus of market discussion. Because Bitcoin rebounded sharply in the subsequent bull market, the portion Tesla sold earlier was seen as missing out on massive potential gains. According to market-tracking data, Tesla still holds about 11,509 Bitcoins. As of Q1 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 court criticism that “most cryptocurrencies are scams” does not mean he completely rejects Bitcoin or crypto assets. Instead, it appears more like he is distinguishing Bitcoin and a small number of other assets from the many speculative tokens. For the market, however, this statement still has symbolic meaning: a tech billionaire who once sent Dogecoin surging, led Tesla to buy Bitcoin, and once caused the market to swing sharply with his tweets is now, in an OpenAI lawsuit, openly admitting that “most of the crypto market is a scam.”

Further Reading
Elon Musk and Altman’s Lawsuit Hearing Day 1: A Breakdown of Both Sides’ Statements and Lawyer Debates to Understand the Power Struggle at OpenAI

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