Elon Musk’s $258 Billion Dogecoin Lawsuit Gains Momentum as New Defendants and DOGE Investors Arrive

The plaintiffs allege that the dogecoin cryptocurrency is a Ponzi scheme, pointing out that Musk and his companies “falsely and misleadingly claim that dogecoin is a legitimate investment when it has no value“.

New defendants and plaintiffs added to lawsuit against Elon Musk over dogecoin.

An amended complaint in the $258 billion lawsuit against Elon Musk, Tesla and Spacex was filed in federal court in Manhattan on Tuesday.

Seven new investor plaintiffs and six new defendants, including Musk’s tunneling company, The Boring Company, and the Dogecoin Foundation, have been added to the lawsuit.

Musk, Tesla, Spacex, The Boring Company and other defendants are accused of intentionally driving up the price of dogecoin (DOGE) by more than 36,000% over two years before the cryptocurrency meme crashed.

According to the complaint, the defendants have “benefited from tens of billions of dollars“at the expense of other dogecoin investors, claiming that they knew all along that the crypto-meme had no intrinsic value and that its value”depended solely on marketing.

The lawsuit was originally filed in June, alleging that Musk and his companies “are engaged in a crypto pyramid scheme through the crypto dogecoin.The plaintiffs claimed that the “Defendants falsely and misleadingly claim that dogecoin is a legitimate investment when it has no value.

Following the announcement of the first lawsuit, Elon Musk confirmed that he would continue to buy and support dogecoin. The CEO of Tesla, who has been called the Dogefather by cryptocurrency supporters, promoted dogecoin on Twitter. He said the crypto-meme has potential as a currency, calling it “people’s crypto“.

In May, Elon Musk said Spacex would soon accept DOGE as payment, and Starlink subscriptions could follow. Tesla already accepts meme currency for some products. The Boring Company began accepting DOGE as payment for rides on its Las Vegas transportation system, the Loop, in July.

After Tesla sold 75% of its bitcoin reserves in July, Elon Musk confirmed that his electric car company did not sell any of its dogecoins, noting that the bitcoins sold in July were due to liquidity concerns. overall company, given the Covid shutdowns in China.

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