Elon Musk is accused of running a pyramid scheme

Elon Musk is accused of running a pyramid scheme

The $258 billion lawsuit accusing Elon Musk of running a pyramid scheme to back the Dogecoin cryptocurrency is expanding. Thus seven new plaintiff investors and six new defendants are included, including his tunnel construction company Boring, reports Reuters.

An amended complaint filed late Tuesday in federal court in Manhattan alleges that 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% on during two years, and then they let it collapse, according to news.ro

From a legal point of view, 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 only on marketing,” the complaint says.

In this sense, the Tesla, SpaceX and Boring companies did not respond to requests for comments.

And the Tesla company abolished its media relations department as early as 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.

In the financial context, the $258 billion drop represents three times the expected drop 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 stir”.

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