Elon Musk’s $258 billion Dogecoin lawsuit gains momentum with new defendants and DOGE investors – Featured Bitcoin News

The plaintiffs allege that the dogecoin crypto-currency is a Ponzi scheme, noting that Musk and his companies “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value“.

New defendants and plaintiffs added to dogecoin lawsuit against Elon Musk.

An amended complaint in the $258 billion lawsuit against Elon Musk, Tesla and Spacex was filed Tuesday in Manhattan federal court.

Seven new investor plaintiffs and six new defendants, including Musk’s tunneling company, The Boring Company, and the Dogecoin Foundation, have been added to the lawsuit.

Musk, Tesla, Spacex, The Boring Company and other defendants are accused of intentionally driving up the price of dogecoin (DOGE) by more than 36,000 percent over two years before the cryptocurrency meme crashed.

According to the complaint, the defendants “profited from tens of billions of dollars“at the expense of other dogecoin investors, claiming that they knew all along that the crypto meme had no intrinsic value and that its value”depended solely on marketing.“

The lawsuit was originally filed in June, alleging that Musk and his companies “are engaged in a cryptographic pyramid scheme through the crypto dogecoin.“Plaintiffs asserted that the “Defendants falsely and misleadingly claim that dogecoin is a legitimate investment when it has no value.“

Following the announcement of the first lawsuit, Elon Musk confirmed that he would continue to buy and support dogecoin. The Tesla CEO, who was called the Dogefather by crypto-currency supporters, promoted dogecoin on Twitter. He stated that the crypto meme has potential as a currency, calling it “people’s crypto“.

In May, Elon Musk said that Spacex would soon accept DOGE as a form of payment and that Starlink subscriptions could follow. Tesla already accepts the meme currency for some products. The Boring Company began accepting DOGE as payment for rides on its Las Vegas transportation system, the Loop, in July.

After Tesla sold 75 percent of its bitcoin reserves in July, Elon Musk confirmed that his electric car company did not sell any of its dogecoins, noting that the bitcoins sold in July were due to concerns about the company’s overall liquidity, given Covid’s shutdowns in China.