Elon Musk, Tesla and SpaceX are facing a 8 billion lawsuit

Elon Musk, Tesla and SpaceX are facing a $258 billion lawsuit

Elon Musk is facing a class action lawsuit claiming $258 billion from him and his companies Tesla, SpaceX and The Boring Company. He is accused of creating a Ponzi scheme that caused investors to lose a lot of money.

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Last June, a cryptocurrency investor filed a complaint against Elon Musk and the companies Tesla and SpaceX. He estimates that he suffered a loss of 86 billion dollars after the sharp decline in the value of Dogecoin, and he is claiming this sum from each of the three entities, accused of promoting the currency. For three months, the file has grown and new actors are involved in the case.

Reuters reports that seven investors have joined the ranks of the plaintiffs. Additionally, prosecutors have identified six new defendants, including The Boring Company, a company founded by Elon Musk. The entrepreneur and the companies he runs allegedly deliberately inflated the price of Dogecoin by more than 36,000% over a two-year period to attract investors, before allowing it to collapse, the plaintiffs believe.

Dogecoin crash: what is the role for Elon Musk?

The complaint states that the defendants “they have made tens of billions of dollars in profit” at the expense of other Dogecoin investors. According to the plaintiffs, Elon Musk, Tesla, SpaceX and The Boring Company were aware of Dogecoin’s health. “it just depends on the sale” and that cryptocurrency lacked intrinsic value. Among the new players docked, we can also mention the Dogecoin Foundation, a non-profit organization that is responsible for the management of the network.

DOGE is currently trading at around $0.064, down from $0.74 at the all-time high. So its value was divided by more than 10 during that period. Elon Musk, however, assured that he will continue to buy Dogecoin despite the crypto crash. Last July, Tesla announced on the other hand that it had sold 75% of its Bitcoin holdings. Elon Musk tried to reassure by explaining that the automaker needed cash.

Source: Reuters