Elon Musk’s $258 Billion Dogecoin Lawsuit Gains Momentum

According to an amended complaint filed Tuesday evening in federal court in Manhattan, Musk, his electric car company Tesla Inc, his space tourism company SpaceX, Boring and others intentionally drove up the price of Dogecoin by more than 36,000% in two years, then let it collapse.

In doing so, defendants “profited tens of billions of dollars” at the expense of other investors in Dogecoin, knowing all along that the currency had no intrinsic value and that its value “depends solely on marketing,” according to the complaint.

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

The original lawsuit was filed in June.

Shortly after, Musk, the richest person in the world, tweeted that he would “continue supporting Dogecoin,” and said in an interview that “people who work around the SpaceX or Tesla factory” told him requested this support, according to the amended complaint.

Other new defendants include the Dogecoin Foundation, which presents itself as a non-profit organization providing governance and support for Dogecoin. She could not immediately be reached for comment.

The $258 billion in damages represents three times the estimated decline in Dogecoin’s market value since May 2021.

It was around this time that Musk, playing a fictional financial expert in a “Weekend Update” segment of NBC’s “Saturday Night Live,” called Dogecoin “a scam.”

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

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

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