Elon Musk added another controversial layer to his ongoing courtroom battle with OpenAI this week after telling a federal jury that most cryptocurrencies are “scams”. Though he continued to defend Bitcoin as one of the few digital assets with genuine merit.
The comments came during testimony in Musk’s lawsuit against OpenAI and CEO Sam Altman in Oakland, California, where proceedings have increasingly expanded beyond artificial intelligence into discussions around funding models, governance, and early attempts to commercialize OpenAI.
According to reports from inside the courtroom, the crypto discussion emerged after lawyers questioned Musk about internal OpenAI conversations from 2018 involving a possible initial coin offering (ICO) to help finance the organization during its nonprofit phase. Responding to questions about cryptocurrencies, Musk told the jury: “Some of them have merit, but most of them are scams.”
The remark quickly drew attention across both the crypto and AI industries, particularly given Musk’s long public association with digital assets such as Dogecoin and Bitcoin. While Musk has frequently promoted crypto over the years, his courtroom comments reflected a noticeably more skeptical tone toward the broader market.
LATEST: ⚡ Elon Musk told a jury in his OpenAI lawsuit that some cryptocurrencies have merit, but “most of them are scams.” pic.twitter.com/8mYc99vONe
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Crypto community reactions pour in
Musk’s courtroom comments quickly triggered strong reactions across the crypto industry, with people debating whether his criticism reflected legitimate concerns about fraud in crypto or an unfair generalization of the broader market. While some agreed with his assessment of speculative tokens, others pointed to the irony of Musk distancing himself from an industry he has heavily influenced for years through public endorsements and market-moving posts.
Musk says bitcoin still stands out as OpenAI’s earlier crypto funding talks resurface
Despite criticizing much of the crypto market, Musk reportedly maintained a more favourable stance toward Bitcoin during testimony, aligning with previous public statements in which he described the asset as comparatively reliable and decentralized.
The courtroom discussion also revived attention around the ICO boom that dominated the crypto sector in the late 2010s. At the time, many startups raised billions through token sales, though the period later became associated with widespread fraud, abandoned projects, and regulatory crackdowns. Some analysts have noted that Musk’s comments appear tied specifically to that era’s speculative excesses rather than a blanket rejection of blockchain technology itself.
The testimony forms part of a broader legal battle in which Musk accuses OpenAI of abandoning its original nonprofit mission in favour of commercial interests tied to Microsoft and large-scale AI monetisation. OpenAI has denied the allegations, arguing that Musk was aware of discussions around commercial restructuring before leaving the company in 2018.
So far, the proceedings have exposed increasingly tense exchanges between Musk and OpenAI’s legal team, with disputes ranging from AI safety concerns to fundraising strategies and governance decisions. Judges overseeing the case have repeatedly pushed both sides to stay focused on the core legal claims as testimony continues.
The trial is expected to continue in the coming weeks, with additional testimony anticipated from OpenAI executives and expert witnesses. For now, Musk’s remarks have added yet another flashpoint to a courtroom battle already shaping up as one of Silicon Valley’s most closely watched legal confrontations.
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