Some new plaintiffs and defendants have joined in the lawsuit against Elon Musk and Dogecoin for $258 billion.

What happened?

In June, a US citizen Keith Johnson filed a lawsuit against Elon Musk, as well as SpaceX and Tesla companies for $258 billion, accusing them of promoting a fraudulent pyramid scheme of the meme cryptocurrency Dogecoin. Keith Johnson claims that Musk and his companies created an illegal scheme to inflate the price of Dogecoin.

💡 Dogecoin is a cryptocurrency based on the mechanism of Litecoin and Bitcoin. It was introduced in 2013. It is characterized by high transaction speed and low commission. The average time to create a Dogecoin block is 1 minute. It is considered the first “meme cryptocurrency”.

Johnson‘s hope was that the lawsuit would become widespread after other investors who had lost funds due to Dogecoin trading since April 2019 would join him.

“The respondent party falsely and deceptively claimed that Dogecoin is a reasonable investment, although it has no value at all,” Johnson said in the lawsuit.

What’s changed?

Last week, seven new plaintiffs from among investors, as well as six new respondent parties, joined the $258 billion lawsuit.

According to Reuters, in an updated version of the lawsuit, Mr. Musk, the head of car manufacturer Tesla, rocket company SpaceX, Boring, and other companies had been deliberately increasing the value of Dogecoin for two years (as a result it increased by 36000%) and then they allowed the collapse of the cryptocurrency.

So far, the only official statement of Elon Musk can be considered as:

The token gained popularity in 2021 after Elon Musk began supporting this cryptocurrency on his Twitter. Musk himself invested in the token and allowed customers to pay for goods on the Tesla website using Dogecoin. Musk said that he supports Dogecoin because of the popular character of the cryptocurrency, plus many Tesla and SpaceX employees own it.

How does this story end? Who do you believe?

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