Dogecoin Investors And New Defendants Join Elon Musk’s $258 Billion Lawsuit

New defendants and DOGE investors have been added to the $258 billion lawsuit against Elon Musk, Tesla, and SpaceX for their promotion of dogecoin. The plaintiffs assert that Musk and his businesses “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.” They emphasize that the meme cryptocurrency dogecoin is a Ponzi scheme.

Elon Musk, Tesla, and SpaceX are the targets of a $258 billion lawsuit, which was revised on Tuesday and filed in federal court in Manhattan. The case was expanded with the entry of seven additional investor plaintiffs and six additional defendants, including Elon Musk’s tunnel building company, The Boring Company, and the Dogecoin Foundation.

Before the meme cryptocurrency plummeted, it is alleged that Musk, Tesla, SpaceX, The Boring Company, and other defendants purposefully raised the price of dogecoin (DOGE) by more than 36,000% over two years. According to the complaint, the defendants “profited tens of billions of dollars” at the expense of other dogecoin investors despite knowing that the meme cryptocurrency had no intrinsic value and that its value “depended solely on marketing.”

According to the initial lawsuit filed in June, Musk and his businesses “are engaged in a crypto pyramid scheme (aka Ponzi scheme) by way of dogecoin cryptocurrency.” The plaintiffs alleged that the “Defendants falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.” After hearing about the initial lawsuit, Musk affirmed that he would continue to promote and purchase dogecoin. The Dogefather, as proponents of the joke cryptocurrency have dubbed the Tesla CEO, has been pushing dogecoin on Twitter. As the “people’s crypto,” he claimed the meme cryptocurrency had promise as a medium of exchange.

In May, Musk stated that Starlink subscriptions might come when Spacex begins to take DOGE as payment for goods. Tesla already takes the meme coin in exchange for some merchandise. In July, The Boring Company started allowing DOGE as payment for rides on its Loop metro system in Las Vegas. Musk said that Tesla had not sold any dogecoin, despite selling 75% of its holdings in bitcoin in July. Musk noted that the reason for the BTC sale was worries about the company’s overall liquidity in light of Covid’s closures in China.

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