With new defendants and DOGE investors, the $258 billion lawsuit against Elon Musk and Spacex for their dogecoin promotion is now even more extensive. Plaintiffs claim that the meme cryptocurrency dogecoin was a Ponzi scheme. Musk and his companies “falsely” claim that dogecoin can be a legitimate investment, even though it has no value.
Lawsuit Against Elon Musk over Dogecoin has been expanded to include new Defendants as well as Plaintiffs. Tuesday’s Manhattan federal court filed an amended complaint to the \$258 Billion lawsuit against Elon Musk and Spacex.
Six new defendants were added to this lawsuit, as well as seven new plaintiffs from investors, including Musk’s tunnel-construction business The Boring Company.
Elon Musk purposely drove up the price of Dogecoin
Musk’s, Tesla and Spacex were accused of deliberately driving up DOGE’s price by more than 36,000% in the two years prior to the crash of the meme cryptocurrency.
According to the complaint, the defendants “gained tens and billions of dollars” from other dogecoin investors. They claimed that they knew that the meme crypto had no intrinsic value and that its value was dependent on marketing.
The original lawsuit was filed in June. It claimed that Musk and his companies were “engaged in a crypto-pyramid scheme (aka Ponzi Scheme) by way dogecoin cryptocurrency.
Elon Musk says he will continue to support Dogecoin
After the initial lawsuit was announced, Musk said that he would continue to support dogecoin and will buy more. Musk, the Tesla CEO, has promoted dogecoin via Twitter.
He has been nicknamed the Dogefather (by supporters of the meme cryptocurrency). He claimed that the meme crypto had potential to be a currency and called it the people’s cryptocurrency.
Musk stated in May that Spacex would soon accept Doge for merchandise. Starlink subscriptions could also follow. Tesla accepts the meme coin for some merchandise. In July, the Boring Company began accepting DOGE for transportation on its Las Vegas Transit System Loop.
Musk stated that Tesla had sold 75% of its bitcoin holdings to Musk in July. He also confirmed that his electric car company did not sell any of its dogecoin. Musk said that the BTC sale was due in part to concerns about overall liquidity given the Covid shutdowns.