Elon Musk is facing a lawsuit alleging that the multi-billionaire promoted a pyramid scheme around Dogecoin hype. Expanding the case, seven new investor plaintiffs and six new defendants have joined the investigation. This time Musk’s tunnel construction business The Boring Company. He has also joined the case as a respondent. The case against Musk was filed around June by complainant Keith Johnson in federal court in Manhattan, US. The case seeks to investigate whether Musk’s support for the meme-coin, which is currently priced at $0.060 (approximately Rs.4.80), has caused financial losses to its investors.
The original complaint against Musk has also been amended with the addition of more plaintiffs in the case. The reworked complaint now accuses Musk of raising DOGE prices by more than 36,000 percent over the past two years, along with his companies Tesla, SpaceX and Boring, before it crashed, Reuters informed of on Thursday 8 September.
The complaint alleges that Musk and other defendants in the case made billions of dollars at the expense of DOGE investors because they knew the meme-coin didn’t actually have substantial value, but that they also knew their marketing promoted altcoins. can give.
So far, no official response from Musk or the Dogecoin Foundation has appeared in the public domain.
Johnson, the first complainant in the case, is seeking $86 billion (about Rs 6,71,300 crore) in damages, which represents the decline in Dogecoin’s market cap since May 2021, and seeks to triple it.
He wants to stop Musk and his companies from promoting Dogecoin and a judge can declare that Dogecoin trading is gambling under federal and New York law.
The complaint noted that Dogecoin sales began when Musk hosted the NBC show Saturday Night Live and played a fictional financial expert on a Weekend Update segment that called Dogecoin “a bust.”
Musk’s support for DOGE is nothing new. The tech mogul has called DOGE ‘People’s Crypto’ on several occasions.
In May of this year, Musk said that SpaceX would soon start accepting DOGE payments for the sale of its merchandise.