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The Dogecoin Process Expands | Business insurance



(Reuters) – The $258 billion racketeering lawsuit accusing Elon Musk of running a pyramid scheme to back the Dogecoin cryptocurrency has been expanded, adding seven new investors as plaintiffs and six new defendants including his tunnel-building Boring Co.

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

By doing so, the defendants “earned tens of billions of dollars” at the expense of other Dogecoin investors, all the while knowing that the currency had no intrinsic value and that its value was “solely due to marketing,”

; the complaint said.

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

The original lawsuit was filed in June.

Other new defendants include the Dogecoin Foundation, which calls itself a non-profit organization that provides governance and support to Dogecoin. It could not immediately be reached for comment.

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

It was around that time that Musk, who played a fictional financial expert on a “Weekend Update” segment of NBC’s “Saturday Night Live,” called Dogecoin “a hustle.”

Dogecoin was trading at around 6 cents on Wednesday, down from around 74 cents in May 2021.


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