Elon Musk and his company Tesla, SpaceX have been sued for $258 billion. This lawsuit is due to the promotion of Doze Coin. Prosecutors say that Doze Coin is a Ponzi scheme, falsely promoted by Elon Musk and his company, and that it is a legitimate investment without any value.
New prosecutors and defendants added
An amended complaint of a $258 billion lawsuit against Elon Musk, Tesla and SpaceX was filed in Manhattan federal court on Tuesday. Seven new investor prosecutors and six new defendants have been added to the lawsuit, including Musk’s tunneling company The Boring and the Dodge Coin Foundation.
The complaint alleges that the defendants made billions of dollars in profits at the expense of other Doge Coin investors.” All they knew was that meme crypto lacked intrinsic value and that its value “relied solely on advertising.
The lawsuit was originally filed in June, alleging that Musk and his companies engaged in a crypto pyramid scheme (aka Ponzi scheme) through Doze cryptocurrency. The prosecutors claimed that “the defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value.”
In May, Musk said that SpaceX would soon accept DOGE to purchase merchandise and acquire Starlink membership. Tesla already accepts Meme Coin for some merchandise. The Boring Company also started accepting DOGE as payment.
After Tesla sold 75% of his bitcoin holdings in July, Musk confirmed that his electric car company had not sold its Doze coins. The intention of selling bitcoin is only to increase the liquidity of the company.