Tesla head Elon Musk has been facing a lawsuit alleging he ran a Dogecoin pyramid scheme, and now the case is set to expand with several new plaintiffs, and the addition of Musk’s other companies as defendants.
According to a filing on Tuesday with the presiding Manhattan court reported by Reuters, the $258 billion racketeering lawsuit accusing Musk and his companies of running a Dogecoin pyramid scheme has added seven new investor plaintiffs.
The case has also added Musk’s companies SpaceX and the Boring Company, saying the companies helped Tesla intentionally drive up Dogecoin’s price by more than 36,000 percent over two years, before letting it crash completely.
The Boring Company to Launch Dogecoin Payments for Vegas Loop Rides https://t.co/Zr2133rXGT
— TeslaNorth.com (@RealTeslaNorth) July 6, 2022
The complaint says that defendants “profited tens of billions of dollars” at the expense of other Dogecoin investors, while knowing that the currency’s value “depended solely on marketing.”
Musk has said he “strongly believes in crypto” in the past, in addition to working with Dogecoin’s developers, and accepting the currency and fellow cryptocurrency Bitcoin for limited periods of time at Tesla.
SpaceX also plans to launch the DOGE-1 Mission to the moon, which is expected to be the first-ever launch paid for by Dogecoin.
Currently, Dogecoin is trading at a value of around 6 cents, down from a May 2021 high of about 74 cents.
