With new DOGE investors and defendants, the $258 billion suit filed against Elon Musk and Spacex for their dogecoin promotion is now even more extensive. The plaintiffs allege that the meme cryptocurrency dogecoin is a Ponzi scheme, emphasizing that Musk and his companies “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”
Elon Musk’s Dogecoin Lawsuit Adds New Plaintiffs and Defendants
On Tuesday, a modified complaint was filed in Manhattan federal court to the $258 million lawsuit against Elon Musk and Tesla.
Seven new investor plaintiffs and six new defendants, including Musk’s tunnel construction business The Boring Company and Dogecoin Foundation, were added to the lawsuit.
Musk, Spacex (Spacex), The Boring Company and others have been charged with intentionally driving up dogecoin’s value by over 36,000% during the period before the mechanized cryptocurrency crash.
The complaint alleged that the defendants “profited tens of billions of dollars” at other dogecoin investors’ expense, claiming that they knew all along that the meme crypto lacked 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 (aka Ponzi scheme) by way of dogecoin cryptocurrency.” The plaintiffs claimed that the “Defendants falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”
Musk stated that he would continue to support dogecoin and buy it again after hearing about the lawsuit. Musk, the Tesla CEO and a popular meme crypto supporter, is known as the Dogefather. He has promoted dogecoin via Twitter. He said the meme crypto has potential as a currency, calling it the people’s crypto.
Musk announced in May that Spacex will soon take DOGE to purchase merchandise. Starlink subscriptions might follow. Tesla has begun accepting the meme currency for certain merchandise. In July, the Boring Company began accepting DOGE for payments on rides using its Las Vegas Transit System Loop.
Musk said after Tesla had sold 75% its bitcoin holdings, that Tesla did not sell any of his dogecoin. Musk also confirmed that his electric vehicle company has not yet sold any of its dogecoin. This was in response to concern about overall liquidity given the Covid Shutdowns in China.
How do you feel about the lawsuit over dogecoin against Elon Musk, his company and other defendants? Comment below.
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