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IPFS News Link • Lawsuits

$258 billion Dogecoin racketeering lawsuit filed against Elon Musk has expanded...

•, by: Cassie B.

A high-profile racketeering lawsuit filed against Elon Musk accusing the Tesla CEO of running a pyramid scheme involving the cryptocurrency Dogecoin has now expanded.

An amended complaint that was filed this week in a Manhattan federal court saw seven new investor plaintiffs added to the suit as well as six new defendants. The lawsuit maintains that Musk, Tesla, Musk's space tourism company SpaceX, tunnel construction business Boring and other parties purposely drove up the price of the Dogecoin cryptocurrency by more than 36,000% across a span of two years and then allowed it to crash.

This allowed the defendants to profit to the tune of tens of billions of dollars at the expense of others who invested in the cryptocurrency. According to the complaint, this was done with the full awareness that Dogecoin lacked intrinsic value and that its value "depended solely on marketing."

The original lawsuit for $258 billion was filed in June. That amount is three times the estimated decline in the market value of the cryptocurrency since May of last year, when its value was 74 cents; it traded at around 6 cents yesterday.

The suit alleges: "Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all. Since Defendant Musk and his corporations SpaceX and Tesla, Inc began purchasing, developing, promoting, supporting and operating Dogecoin in 2019, Plaintiff and the class have lost approximately $86 billion in this Crypto Pyramid Scheme."