Musk Says Most Crypto Is Scams in OpenAI Trial; Tesla Still Holds BTC

Published: 2026-04-30 20:33:57 |

In an Oakland courtroom testimony tied to OpenAI’s origin and funding dispute, Elon Musk said “most” crypto projects are scams. The remarks came as lawyers argued whether OpenAI’s 2018 plan to raise funds via an ICO (initial coin offering) was later abandoned and whether the nonprofit mission was effectively breached when the company moved toward a more commercial model. Musk claimed OpenAI violated its founding agreement after pursuing a for-profit structure and taking major investment from Microsoft (MSFT). OpenAI and Sam Altman dispute this, saying the shift was necessary to secure sufficient funding. Musk also said he was “reassured” the nonprofit would still operate as a charity. For crypto traders, the most direct market linkage is Musk/Tesla’s BTC exposure. Tesla previously bought about $1.5B of Bitcoin in 2021 and sold roughly 75% in mid-2022, but it still held 11,509 BTC. Filings for Q1 2026 showed an impairment loss (about $173M) after Bitcoin fell during the quarter. Bottom line: Musk’s “crypto scams” language can pressure short-term sentiment around higher-risk tokens and ICO-era narratives, while the continued Tesla BTC balance sheet keeps BTC pricing tightly in the spotlight.

Neutral

Musk’s “most crypto is scams” comment is a sentiment shock that can increase short-term risk-off behavior and widen volatility in higher-beta tokens, creating a potential near-term bearish bias. However, the later details emphasize Tesla’s ongoing BTC balance-sheet exposure, including reported impairment tied to Bitcoin’s drop. That linkage can offset some headline-driven panic by keeping BTC treated as a major institutional/treasury reference point. Overall, the likely effect on BTC itself is mixed: short-term headline volatility may rise, but there’s no direct new BTC-specific policy or flow change reported here. Net impact is therefore neutral, with traders more likely to monitor risk appetite and BTC sentiment rather than expect a sustained trend reversal.