Another Dogecoin investor lawsuit has been filed against Elon Musk. This complaint will be added to the ongoing case of Johnson v. Musk, which could cost Musk up to $258 billion. Dogecoin investors accuse Musk of manipulating the price of the cryptocurrency and run a "pyramid scheme" to increase their value.
What is Elon Musk accused of?
This time, the plaintiffs are less focused on the negative opinions of Dogecoin voiced by Elon Musk and more about how he has used his power to manipulate the price of cryptocurrency. Documents filed in Manhattan federal court accuse Musk of โcarnival barking, market manipulation and insider tradingโ with the intention of enriching themselves at the expense of small investors. The new complaint cited Musk's Twitter hack when he replaced the iconic bird icon with an image of the Dogecoin dog.. When the switch was made, Musk sold $124 million worth of Dogecoin, causing a short-term rise in the coin's value.
Why was Elon Musk sued for $258 billion?
Last year, the same Manhattan court received a complaint from Keith Johnson, who accused the Tesla CEO of participating in organized crime. Johnson, a US citizen, claimed to have been a victim of the defendants' Dogecoin crypto pyramid scheme, which resulted in a financial loss.
He complaint It continues: "Defendants falsely and misleadingly assert that Dogecoin is a legitimate investment when it has no value."
A lawsuit has been filed on behalf of people who have suffered financial loss trading Dogecoin since April 2019. The lawsuit seeks $86 billion in damages, that the plaintiff requests be tripled.
In April 2023, Musk asked the court to dismiss the case.
