Lawsuit against Elon Musk over Dogecoin expands

08.09.2022

The $258 billion racketeering lawsuit accusing Elon Musk of running a financial pyramid scheme to support the Dogecoin cryptocurrency has expanded, adding seven new investor plaintiffs and six new defendants, including his tunnel-building company Boring Co.

According to the amended complaint filed Tuesday night in federal court in Manhattan, Musk, his electric car company Tesla Inc, his space tourism company SpaceX, Boring and others deliberately raised the price of Dogecoin by more than 36,000% over two years and then allowed it to collapse.

The defendants thus “profited tens of billions of dollars” at the expense of other investors in Dogecoin, while knowing that the currency has no intrinsic value and that its value “depends solely on marketing,” the complaint says.