Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Elon Musk’s $258B Dogecoin Lawsuit Grows As New Defendants, DOGE Investors Join – Featured Bitcoin News
The $258 billion lawsuit against Elon Musk, Tesla and Spacex over their dogecoin campaign has expanded with new defendants and DOGE investors added. The plaintiffs allege that the meme cryptocurrency dogecoin is a Ponzi scheme, stressing that Musk and his companies “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”
New defendants and plaintiffs added to lawsuit against Elon Musk over Dogecoin
An amended complaint to 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 tunnel construction business The Boring Company and the Dogecoin Foundation, were added to the lawsuit.
Musk, Tesla, Spacex, The Boring Company and other defendants have been accused of intentionally driving up the price of dogecoin (DOGE) more than 36,000% over two years before the meme cryptocurrency crashed.
The complaint alleged that the defendants “made tens of billions of dollars” at the expense of other dogecoin investors, claiming they knew all along that the meme crypto lacked intrinsic value and that its value “relied solely on marketing.”
The lawsuit was originally filed in June, alleging that Musk and his companies “are engaged in a crypto pyramid scheme (aka Ponzi scheme) using dogecoin cryptocurrency.” The plaintiffs claimed that “Defendants falsely and misleadingly claim that dogecoin is a legitimate investment when it has no value at all.”
Following the news of the original lawsuit, Musk confirmed that he will continue to buy and support dogecoin. The Tesla CEO, who has been dubbed the Dogefather by followers of the meme cryptocurrency, has been promoting dogecoin on Twitter. He said the meme crypto has potential as a currency, calling it the people’s crypto.
In May, Musk said Spacex would soon accept DOGE for goods and Starlink subscriptions could follow. Tesla already accepts the meme coin for some items. The Boring Company began accepting DOGE as payment for rides on the Las Vegas Loop transit system in July.
After Tesla sold 75% of its bitcoin holdings in July, Musk confirmed that his electric car company has not sold any of its dogecoins, noting that the BTC sale was due to concerns about overall liquidity for the company, given the Covid shutdown in China .
What do you think about this dogecoin lawsuit against Elon Musk and his companies? Let us know in the comments section below.
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