Elon Musk $258 billion Dogecoin lawsuit expands

The $258 billion racketeering lawsuit accusing Elon Musk of working a pyramid scheme to help the cryptocurrency dogecoin has expanded, including seven new investor plaintiffs and 6 new defendants together with his tunnel building enterprise Boring Co.

In response to an amended grievance filed on Tuesday evening in Manhattan federal court docket, Musk, his electrical automobile firm Tesla, his house tourism firm SpaceX, Boring and others deliberately drove up the worth of dogecoin greater than 36,000% over two years after which let it crash.

By doing so, the defendants “profited tens of billions of {dollars}” at different dogecoin buyers’ expense, whereas figuring out all alongside that the forex lacked intrinsic worth and that its worth “depended solely on advertising,” the grievance mentioned.

Tesla, SpaceX and Boring didn’t instantly reply on Wednesday to requests for remark. Tesla disbanded its media relations division in 2020.

The unique lawsuit was filed in June. 

Shortly afterward, Musk, the world’s richest individual, tweeted that he would “preserve supporting Dogecoin,” and in an interview mentioned “folks that work across the manufacturing facility at SpaceX or Tesla” requested him for that help, the amended grievance mentioned.

Different new defendants embody the Dogecoin Basis, which calls itself a nonprofit offering governance and help for dogecoin. It couldn’t instantly be reached for remark.

The $258 billion in damages is triple the estimated decline in Dogecoin’s market worth since Might 2021.

That was across the time Musk, taking part in a fictitious monetary skilled on a “Weekend Replace” phase of NBC’s “Saturday Evening Dwell,” referred to as dogecoin “a hustle.”

Dogecoin traded at about 6 cents on Wednesday, down from round 74 cents in Might 2021.

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