Musk stated during a court hearing involving OpenAI that most cryptocurrencies are scams, but some still have value. It also revealed the legal dispute between the two sides over OpenAI’s non-profit mission and its transition to a for-profit model.Tesla CEO Elon Musk, during a court trial involving OpenAI, was unexpectedly asked to comment on the ICO fundraising concept that OpenAI had discussed in its early years. He said, “Some cryptocurrencies have their value, but most are scams.” Many veterans who went through the ICO era might sigh at this: if OpenAI had raised funds in the form of an ICO back then, would it have become one of the most successful cryptocurrencies, or would it have been inevitably marked by speculative traits, leading to a bubble?OpenAI once tried to raise funds through an ICO

CryptoCity

2026-05-05 11:51:48

Elon Musk stated during a court trial with OpenAI that most cryptocurrencies are scams, but some still hold value. He also revealed legal disputes between the two parties regarding their non-profit mission and for-profit transformation.

Tesla CEO Elon Musk unexpectedly commented on the cryptocurrency market when asked about OpenAI’s early discussions of ICO funding ideas during a court hearing. He said, “Some cryptocurrencies have their value, but most are scams.” Many veterans who experienced the ICO era might sigh here: if OpenAI had raised funds through ICO back then, it might have become one of the most successful cryptocurrencies, or inevitably taken on speculative traits and led to a bubble.

OpenAI Tried to Raise Funds via ICO

According to Fortune, Tesla CEO Elon Musk, during a court trial with OpenAI, was asked about OpenAI’s early discussions of ICO funding ideas and unexpectedly commented on the cryptocurrency market. He said, “Some cryptocurrencies have their value, but most are scams.” This remark also prompted the public to reevaluate Musk’s contradictory attitudes toward Bitcoin, Dogecoin, and the crypto market over the past few years.

The core of this lawsuit is not about cryptocurrencies but whether OpenAI has deviated from its founding non-profit mission. Musk accused OpenAI of drifting away from its original goal of developing AI for the benefit of all humanity after establishing a deep commercial partnership with Microsoft, even claiming in court that OpenAI and people like Sam Altman “stole a charity.” OpenAI countered that Musk had long known the company might shift toward a profit-oriented structure and argued that his lawsuit was related to competitive interests with its AI subsidiary, xAI.

Musk’s comments on cryptocurrencies stem from a court inquiry into OpenAI’s 2018 ICO funding plan. ICOs were the hottest fundraising method in the crypto market from 2017 to 2018, with many projects issuing tokens to raise capital quickly, but also accompanied by scams, lack of transparency, and regulatory controversies. Musk’s statements in court imply that cryptocurrencies are not entirely worthless but also categorize most tokens in the market as speculative products lacking real fundamentals.

Many veterans from the ICO era might sigh here: if OpenAI had raised funds via ICO back then, it might have become one of the most successful cryptocurrencies, or inevitably taken on speculative traits and led to a bubble.

Musk’s Twisted Relationship with Bitcoin and Dogecoin

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

This transaction also became a market talking point afterward. As Bitcoin rebounded significantly in the subsequent bull market, Tesla’s early sale was seen as a missed opportunity for substantial gains. According to market tracking data, Tesla still holds about 11,509 Bitcoin; as of Q1 2026, its holdings’ value had fallen to approximately $786 million due to Bitcoin’s decline, but still remained above the estimated original cost of about $386 million.

In other words, Musk’s recent criticism in court that “most cryptocurrencies are scams” does not mean he completely dismisses Bitcoin or crypto assets. Instead, it seems to distinguish Bitcoin and a few other assets from the many speculative tokens. For the market, this statement still carries symbolic significance: a tech billionaire who once caused Dogecoin to surge, led Tesla to buy Bitcoin, and whose tweets once caused market volatility, now openly admits in an OpenAI lawsuit that “most of the crypto market is a scam.”

Further Reading
Elon Musk and Altman’s lawsuit opening day: Summarizing both sides’ statements, lawyer debates, understanding the power struggle of 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

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