Elon Musk’s Dogecoin Lawsuit Grows As More Defendants Join

A lawsuit worth $258 billion had been filed against Elon Musk, Spacex, and Tesla for the promotion of Dogecoin.

It appears that the lawsuit has now expanded, as new DOGE investors and defendants have also joined in.

According to the plaintiffs, the meme token i.e. Dogecoin is just another Ponzi scheme and claims that Musk and his firms call it a legitimate investment, even though it does not carry any value.

Lawsuit grows

Last Tuesday, an amended complaint was filed in a federal court in Manhattan, which is part of the $258 billion lawsuit that has been filed against Tesla’s CEO Elon Musk and his companies.

Six additional defendants and seven investor plaintiffs were added to the case in question. These include the tunnel construction business of Musk, The Boring Company, along with the Dogecoin Foundation.

Musk himself, along with The Boring Company, Spacex, Tesla, and the other defendants have been accused of deliberately pushing up the price of the meme coin.

The accusations dictate that the defendants drove up the price of Dogecoin by almost 36,000% in a time span of two years, after which the crypto eventually crashed.

The complaint

According to the complaint, the defendants were able to enjoy profits worth tens of billions of dollars at the expense of the other investors of dogecoin.

It claims that Musk and his companies were aware that the meme token did not have any intrinsic value and that it was solely dependent on marketing.

Originally, the lawsuit had been filed back in June and it alleged that Musk and his firms were involved in a Ponzi scheme, or a crypto pyramid scheme in the form of Dogecoin.

The plaintiffs have said that the defendants portrayed Dogecoin as a legitimate investment, even though it lacks value.

Musk’s response

When Musk first heard about the lawsuit, he responded that he would not stop supporting or purchasing dogecoin.

Supporters of the meme token often refer to Musk as the Dogefather and the Tesla CEO has promoted the crypto several times on Twitter.

He has referred to the token as people’s crypto and has stated that he believes it has a lot of potential as a currency.

Musk also announced in May that Spacex would also begin accepting DOGE for some merchandise and he added that it could also do so for Starlink subscriptions.

Tesla is already taking payments in the form of DOGE for some of its merchandise. Likewise, The Boring Company also jumped on the bandwagon in July.

It had started accepting payments in dogecoin for its Loop transit system in Las Vegas. It had been disclosed in the same month that Tesla had sold almost 75% of its bitcoin holdings.

However, the chief executive had clarified that it had not done the same to its dogecoin holdings. He had said that the sale of BTC was because of the company’s liquidity issues.

These had occurred because of the COVID shutdowns that had been happening in China.

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