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Elon Musk has been accused by more people of running the Dogecoin pyramid scheme; Know the details

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Seven new investor plaintiffs have joined the $258 billion extortion lawsuit that accused the Tesla CEO Elon Musk To run a pyramid scheme in order to support the popular cryptocurrency Dogecoin, which further expands the case. The case also expanded as six new defendants including Musk’s Boring Co. joined in the construction of the tunnels.

An amended complaint filed Tuesday night in Manhattan federal court reportedly said that Elon Musk, electric car maker Tesla Inc, and his space tourism company SpaceX along with Boring and others intentionally caused the price of Dogecoin to rise more than 36,000 per cent over two years and then Let it collapse.

Tesla, SpaceX and Boring did not immediately respond on Wednesday to requests for comment. Reuters reports that Tesla dissolved its media relations division in 2020.

The original lawsuit was filed in June.

Shortly thereafter, Musk, the world’s richest person, tweeted that he would “continue to support Dogecoin,” and in an interview he said “people who work at 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 non-profit organization that provides governance and support for Dogecoin. It was not immediately available for comment.

The $258 billion damage is three times the estimated drop in Dogecoin’s market value since May 2021.

It was around the time that Musk was playing a fictitious financial expert in the “weekend update” segment of NBC’s “Saturday Night Live,” which Dogecoin called a “hustle.”

In the complaint filed in June,

Prosecutor Keith Johnson accused Musk, electric car company Tesla Inc and space tourism company SpaceX of extortion for promoting Dogecoin and raising its price, only to let the price go down, according to reports.

Keith Johnson, who said he lost his money after investing in Dogecoin, described himself as a “scammed US citizen” in what he referred to as a “Dogecoin crypto pyramid scheme.”

“The defendants have known since 2019 that Dogecoin is of no value after Dogecoin has been promoted for profit from its trading,” the complaint reads. “Musk has used his base as the world’s richest man to operate and manipulate the Dogecoin pyramid system for profit, exposure and amusement,” she added.

Dogecoin was trading at about 6 cents on Wednesday, down from about 74 cents in May 2021, according to Reuters. At the time of writing this article on Friday, Dogecoin price remains at $0.06332, according to CoinMarketCap data.

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

(with Reuters input)

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