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Elon Musk $258 billion Dogecoin lawsuit expands

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The $258 billion racketeering lawsuit accusing Elon Musk of running a pyramid scheme to support the cryptocurrency dogecoin has expanded, adding seven recent investor plaintiffs and 6 recent defendants including his tunnel construction business Boring Co.

In line with an amended criticism filed on Tuesday night in Manhattan federal court, Musk, his electric automobile company Tesla, his space tourism company SpaceX, Boring and others intentionally drove up the value of dogecoin greater than 36,000% over two years after which 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 criticism said.

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

The unique 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 who work across the factory at SpaceX or Tesla” asked him for that support, the amended criticism said.

Other recent defendants include the Dogecoin Foundation, which calls itself a nonprofit providing governance and support for dogecoin. It couldn’t 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 across 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.

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