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

Elon Musk said during a court hearing involving OpenAI that most cryptocurrencies are scams, but some still have value. At the same time, he revealed legal disputes between the two sides over OpenAI’s non-profit mission and its transition toward a for-profit model.

During a court hearing in Musk’s lawsuit against OpenAI, when he was asked about the ICO fundraising idea that OpenAI had discussed in its early days, Tesla CEO Elon Musk unexpectedly offered comments about the cryptocurrency market. He said, “Some cryptocurrencies have value, but most are scams.” Many veterans who went through the ICO era may feel an exhale 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 been unable to escape its speculative nature and ended up in a bubble?

OpenAI Tried to Raise Funds via an ICO

According to Fortune, during the court hearing with OpenAI, Tesla CEO Elon Musk was asked about an ICO fundraising concept that OpenAI had discussed in its early years and unexpectedly made comments about the cryptocurrency market. He said, “Some cryptocurrencies have value, but most are scams.” These remarks also prompted the public to reexamine Musk’s contradictory attitude 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 when it was founded. Musk accused OpenAI of straying from its original goal of “developing AI for the benefit of all humanity” after it entered a deep commercial partnership with Microsoft, and 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 was related to competitive interests with its AI company xAI.

Musk’s comments on cryptocurrencies came from follow-up questions in court about OpenAI’s 2018 ICO fundraising plan. ICOs were the hottest fundraising model in the crypto market from 2017 to 2018. Many projects raised funds quickly by issuing tokens, but they were also accompanied by large numbers of scams, information opacity, and regulatory controversies. Musk’s statements in court essentially acknowledged that cryptocurrencies are not entirely without value, but also classified most tokens in the market as speculative products lacking substantive fundamentals.

Many veterans who went through the ICO era may feel an exhale 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 up in a bubble?

Musk’s Twisted Story with Bitcoin and Dogecoin

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

This deal also became a focus of market discussion afterward. Because Bitcoin rebounded significantly in the subsequent bull market, Tesla’s early sold portion was viewed as having missed out on massive potential gains. According to market tracking data, Tesla still holds about 11,509 BTC. 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 still remains above the estimated original cost of about $386 million.

In other words, Musk’s current criticism in court that “most cryptocurrencies are scams” does not mean he completely denies Bitcoin or crypto assets. Rather, it seems more like he is separating Bitcoin and a small number of assets from the many speculative tokens. But for the market, this remark still carries symbolic meaning: a tech billionaire who once drove Dogecoin soaring, led Tesla to buy Bitcoin, and once caused the market to swing dramatically with his tweets—now, in an OpenAI lawsuit hearing, has admitted in his own words that “most of the crypto market is a scam.”

Further Reading
Elon Musk and Altman’s Lawsuit Begins: Day 1 Recap of Both Sides’ Statements and Lawyer Arguments—How to Understand the Power Struggle at OpenAI

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