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Elon Musk $258 billion Dogecoin lawsuit expands

Stock Markets Sep 08, 2022 12:10AM ET
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© Reuters. FILE PHOTO: A photo of Elon Musk is displayed on a smartphone placed on representations of cryptocurrency Dogecoin in this illustration taken June 16, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
 
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By Jonathan Stempel

NEW YORK (Reuters) - The $258 billion racketeering lawsuit accusing Elon Musk of running a pyramid scheme to support the cryptocurrency Dogecoin has expanded, adding seven new investor plaintiffs and six new defendants including his tunnel construction business Boring Co.

According to an amended complaint filed on Tuesday night in Manhattan federal court, Musk, his electric car company Tesla (NASDAQ:TSLA) Inc, his space tourism company SpaceX, Boring and others intentionally drove up the price of Dogecoin more than 36,000% over two years and then let it crash.

By doing so, the defendants "profited tens of billions of dollars" at other Dogecoin investors' expense, while knowing all along that the currency lacked intrinsic value and that its value "depended solely on marketing," the complaint said.

Tesla, SpaceX and Boring did not immediately respond on Wednesday to requests for comment. Tesla disbanded its media relations department in 2020.

The original lawsuit was filed in June.

Shortly afterward, Musk, the world's richest person, tweeted that he would "keep supporting Dogecoin," and in an interview said "people that work around the factory at SpaceX or Tesla" asked him for that support, the amended complaint said.

Other new defendants include the Dogecoin Foundation, which calls itself a nonprofit providing governance and support for Dogecoin. It could not immediately be reached for comment.

The $258 billion in damages is triple the estimated decline in Dogecoin's market value since May 2021.

That was around the time Musk, playing a fictitious financial expert on a "Weekend Update" segment of NBC's "Saturday Night Live," called Dogecoin "a hustle."

Dogecoin traded at about 6 cents on Wednesday, down from around 74 cents in May 2021.

The case is Johnson et al v. Musk et al, U.S. District Court, Southern District of New York, No. 22-05037.

Elon Musk $258 billion Dogecoin lawsuit expands
 

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Comments (7)
Jim Powers
Jim Powers Sep 08, 2022 5:19AM ET
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unfortunately Justice is no longer blind in the USA very sad
Jim Powers
Jim Powers Sep 08, 2022 5:19AM ET
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retaliation for calling out Twitter
Jim Powers
Jim Powers Sep 08, 2022 5:16AM ET
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SpaceX is a tourism business? musk Bezos what's the difference!this is the state of Journalism today unbelievable
Johnny Crash
Johnny Crash Sep 08, 2022 3:12AM ET
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LOL @ Dogecoin "investors" hahahaha hahahahahahahaha HAHAHAHAHAHAHAHA
Jim Powers
Jim Powers Sep 08, 2022 3:12AM ET
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retaliation for calling out Twitter
Truth Trader
Truth Trader Sep 08, 2022 3:12AM ET
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weren’t you one of them. Sorry for your $100,000 loss.
Osman Saglam
LACS Sep 07, 2022 2:09PM ET
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Tesla is the biggest manupilation by far ,,,, will fail as a ev company in the next 3 to 5 years ,,, going to 0
Jeff Bedatsky
StoneGoose Sep 07, 2022 2:09PM ET
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pull your head out of the sand Tesla is a revolution
Osman Saglam
LACS Sep 07, 2022 2:09PM ET
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sure dude !!!! will see u in 3 yrs ,,, the german and japanese and koreans all build real luxury EV s with even better range now , why buy a simple tesla ********where i can buy a mercedes more luxury and better than tesla , being first does not mean any ********for tesla ,,, they only produce 500,000 ********cars , average capacity of known brands is 10 million a year , U pull your head out of the US Media ********dude ,,, tesla can not survive ,,, its only a manupilation
Jeff Bedatsky
StoneGoose Sep 07, 2022 1:59PM ET
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They all crashed..case dismissed.
Gary Piccone
Gary Piccone Sep 07, 2022 11:29AM ET
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Investing in Dogecoin was gambling not investing
 
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