Elon Musk involved in a pyramid scheme? Stake of

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A $258 billion lawsuit accusing Elon Musk of running a pyramid scheme to back the Dogecoin cryptocurrency has expanded to include seven new investor plaintiffs and six new defendants, including his Boring tunnel construction company , reports Reuters.

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

By doing so, the defendants “profited tens of billions of dollars” at the expense of other Dogecoin investors, all the while knowing that the coin has no intrinsic value and that its value “depends solely on marketing,” the complaint says.

Tesla, SpaceX and Boring did not respond to requests for comment.

Tesla disbanded its media relations department in 2020.

The original lawsuit was filed in June. Shortly after, Musk, the world’s richest person, tweeted that he would “continue to support Dogecoin”, and in an interview he said that “the people who work around the SpaceX or Tesla factory” have requested the support, the amended complaint states.

Other new defendants include the Dogecoin Foundation, which calls itself a nonprofit organization that provides governance and support for Dogecoin. She could not immediately be reached for comment.

The $258 billion in damages is three times the estimated decline in Dogecoin’s market value since May 2021. That was when Musk, playing a fictional financial expert on NBC’s “Saturday Night Live,” called Dogecoin “a agitation”.

Dogecoin is currently trading at around 6 cents per unit, down from around 74 cents in May 2021.