Elon Musk’s $258 billion Dogecoin lawsuit extends to other parties. – Democrat Blog

A $258 billion racketeering lawsuit accusing Elon Musk of running a pyramid scheme to support the Dogecoin cryptocurrency has expanded to include seven new investor plaintiffs and six new defendants, including his tunneling company Boring Co.

Musk, his electric vehicle company Tesla Inc, his space tourism company SpaceX, Boring and others deliberately raised the price of Dogecoin by more than 36,000% in two years, according to an amended lawsuit filed late Tuesday in Manhattan federal court before allowing it’s a crash.

At the same time, the defendants “benefited from tens of billions of dollars” at the expense of other investors in Dogecoin, despite knowing all along that the currency has no intrinsic value and that its value “depends solely on marketing,” the lawsuit says. .

Tesla, SpaceX and Boring did not immediately respond to requests for comment on Wednesday. In 2020, Tesla disbanded its media relations department.

The original lawsuit was filed in June.

Shortly thereafter, Musk, the richest man in the world, tweeted that he would “continue to support Dogecoin” and said in an interview that “people who work in a factory at SpaceX or Tesla” have asked him for that support, according to the modified a complaint.

Other new defendants include the Dogecoin Foundation, which bills itself as a non-profit organization that provides governance and support for Dogecoin. She could not be contacted for comment.

The $258 billion loss is three times the estimated decline in Dogecoin’s market value since May 2021.

Around the same time, Musk, playing a fictitious financial expert on NBC’s Saturday Night Live “Weekend Update” segment, called Dogecoin “a scam.”

Dogecoin was trading at around 6 cents on Wednesday, up from around 74 cents in May 2021.

The case of Johnson et al. v. Musk et al., U.S. District Court, Southern District of New York, no. 22-05037.

(Except for the title, this story has not been edited by the staff and is published from a syndicated channel.)

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