Six additional defendants and seven additional plaintiffs have added to the $258 billion lawsuit filed by an American Dogecoin investor against Tesla CEO Elon Musk, which claims that Musk is operating a cryptocurrency pyramid scheme.
Musk’s Boring Company, the Dogecoin Foundation, and Billy Markus and Jackson Palmer, the creators of the meme coin, are among the newly named defendants.
A cryptocurrency investor is suing Elon Musk, CEO of Tesla and SpaceX, for $258 billion, alleging that Musk ran a pyramid scheme to prop up the price of Dogecoin.
The plaintiff, Keith Johnson, claims that Musk “engaged in racketeering for touting” the cryptocurrency Dogecoin, which was previously unknown. Johnson accuses Musk of artificially inflating the value of Dogecoin and then allowing it to fall, resulting in billions of dollars in losses for investors.
Dogecoin’s price skyrocketed by 4,000% to an all-time high of $0.74 in May 2020, making it a top-10 cryptocurrency, after Musk began promoting it on his personal Twitter account through many “dog-themed memes.”
The plaintiff claims that Musk has been manipulating the price of bitcoin by tweeting and posting memes in which he refers to himself as the “Dogefather.”
Dogecoin Lawsuit Gets New Defendants And Plaintiffs
A Dogecoin investor is suing Elon Musk for $258 billion, claiming that Musk ran a pyramid scheme to promote the meme currency. Several new plaintiffs and defendants who have already been served with summonses have been added to the lawsuit.
Musk’s tunneling company, Boring, the Dogecoin Foundation, several Dogecoin developers, online influencers who promoted the digital asset, and meme coin creators Billy Markus and Jackson Palmer are the latest defendants.
In May 2021, after Musk made an appearance on Saturday Night Live, the price of a dogecoin reached its all-time high of about 74 cents.
The real-time decline in Dogecoin prices began after the Tesla CEO mocked the cryptocurrency in a sketch. According to data compiled by CoinGecko, the value of the coin has plummeted by roughly 90% since its all-time high.
Doge Co-Founder Who Called Elon Musk A Grifter Also Among Defendants
Notably, the defendants now include Jackson Palmer, a co-creator of Dogecoin who is now a crypto critic and who hasn’t worked on Dogecoin since 2015. Also, Palmer has called Musk a “swindler” for backing the meme coin. According to an interview he gave to the Australian news website Crikey, he recently stated:
The original complaint filed against Musk in June in Manhattan’s federal court, claiming that he had pumped up the price of Dogecoin through his promotional efforts before allowing it to crash.
Keith Johnson, the plaintiff in the case, claimed that Musk and other proponents of Dogecoin knew the meme coin had no value but still encouraged people to get involved. As stated in the complaint:
For financial gain, the defendants continued to push Dogecoin despite knowing since 2019 that it was worthless. Musk, as the wealthiest man in the world, was in a prime position to run and manipulate the Dogecoin pyramid scheme for his own gain, notoriety, and amusement.
Dogecoin Foundation And Boring Co. Are Now Under The Radar
The lawsuit has grown and now includes additional defendants. To the original complaint, seven additional investor plaintiffs and six additional defendants have added in a recently amended complaint.
One of the new defendants was Musk’s tunneling company, Boring Co.; the other was the non-profit organization Dogecoin Foundation, which provides infrastructure and governance for the digital currency.
Even after the June complaint filed, Musk did not back down. In fact, he had tweeted his commitment to Dogecoin.
This digression and his interview statement that the people who live and work near the factories owned by his companies “asked him” for support have since added to the amended complaint.
The amended complaint alleges that shortly afterward, Musk, the wealthiest person in the world, tweeted that he would “keep supporting Dogecoin,” and later said in an interview that “people that work around the factory at SpaceX or Tesla” asked him to continue doing so.
For $258 Billion, A Dogecoin Investor Is Suing Elon Musk’s Tesla And SpaceX.
Hundreds of billions of dollars in paper gains have wiped out by the recent crypto sell-off, leaving many would-be crypto millionaires scrambling for alternative investments.
On Thursday, a U.S. Dogecoin investor accused Elon Musk, Tesla, and SpaceX of engaging in racketeering activity in order to artificially inflate the price of the cryptocurrency in a class action lawsuit filed in federal court in Manhattan.
There has been a loss of approximately $86 billion for the class and the plaintiff since 2019, when “Defendant Musk and his corporations SpaceX and Tesla, Inc began purchasing, developing, promoting, supporting, and operating Dogecoin in this Crypto Pyramid Scheme.”
FAQs – People Also Ask
What is Elon Musk’s annual salary?
Elon Musk received no salary for his role as CEO of Tesla, Inc. and reigning Technoking of Tesla. This sum includes no salary, bonus, stock options, stock awards, or anything else monetary.
Why is Elon Musk selling Tesla?
In a recent tweet, Musk announced that he is “done selling,” implying that he was trying to stave off an immediate need to sell Tesla shares in the event that the Twitter deal went through. If the Twitter deal doesn’t go through, he’ll “buy Tesla stock again,” he said.
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