Case against Elon Musk continues to gain momentum. Billionaire accused of DOGE pumping

The prosecution alleges that the billionaire raised the price of the meme cryptocurrency by 36 000% in two years

Claim against Elon Musk continues to gain momentum. Billionaire accused of DOGE pumping

08.09.2022 - 06:45

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2 min

What’s new? There are seven new plaintiffs and six defendants in a pyramid scheme lawsuit that was filed in July against billionaire Elon Musk over his support of the meme cryptocurrency Dogecoin (DOGE). According to an amended complaint seen by Reuters reporters, Musk, and his companies, including Tesla, SpaceX, and Boring Company, intentionally raised the price of DOGE for two years, causing it to rise 36 000% before allowing it to crash.

Material by Reuters

Case details. The document specifies that the defendants “profited tens of billions of dollars” at the expense of other Dogecoin investors while knowing that the currency lacks intrinsic value and that its value “depended solely on marketing.”

The plaintiffs seek $258 billion in pecuniary and non-pecuniary damages from Musk. The Dogecoin Foundation, a non-profit organization that manages blockchain, also emerged among the new defendants.

Following the allegations, Musk repeatedly wrote on Twitter that he would continue to support the meme cryptocurrency. He noted that “people that work around the factory at SpaceX or Tesla” asked him to do so.

As of September 8, 06:40 UTC, DOGE is trading at $0,06, the asset gained 3,08% in the past 24 hours, according to Binance. The meme cryptocurrency has a market capitalization of $8,08 billion.

In August, Musk said that the Dogecoin blockchain has a much higher capacity than Bitcoin, making the former a more efficient payment system.

Also, earlier, lawyers for the social network subpoenaed representatives of the cryptocurrency exchange Binance as part of the case against the billionaire’s refusal to buy Twitter. The lawyers intend to find out under what conditions Binance took part in financing this deal. Musk himself and Citadel hedge fund founder Ken Griffin also received a subpoena.

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