Billionaire Elon Musk has always been very strong about his support for Dogecoin and his frequent posts about the cryptocurrency made this meme coin thrive in the first half of 2021. However, the hype surrounding the cryptocurrency soon ended and caused the price to quickly drop. As expected, some investors got carried away with the hype and lost money in the process.
One of the investors, Keith Johnson, who suffered losses due to falling DOGE prices decided to join the fight with “Dogefather”. Johnson has filed a $258 billion lawsuit against Elon Musk, accusing the billionaire of promoting a Ponzi scheme. Currently, the lawsuit has expanded as more plaintiffs decide to join.
According to the newly amended complaint filed in Manhattan federal court on Tuesday, the $258 billion lawsuit against Elon Musk now has more plaintiffs. A total of seven plaintiffs are named in the lawsuit, along with six new defendants. The complaint emphasizes that the billionaire is allegedly running a Ponzi scheme with Dogecoin. This leads to losses for investors.
The plaintiffs allege that Elon Musk and six other defendants named were able to make billions of dollars from posting about cryptocurrencies. They also accused Musk of promoting Dogecoin even though he knew that the digital asset had no intrinsic value.
The lawsuit originally filed in June named Musk’s other companies, including SpaceX, Tesla, and Boring as well as the Dogecoin Foundation. Johnson has stated in the original lawsuit that he wants the billionaire to stop promoting the meme and pay $258 billion in damages.
Musk still supports Dogecoin
Elon Musk has not stopped supporting Dogecoin despite a major lawsuit against him. In fact, about a month after the lawsuit was filed, the billionaire publicly stated that he would continue to support cryptocurrencies.
Musk’s support for this meme coin is also reflected in the fact that both he and the tesla car company continue to hold the cryptocurrency. After Tesla sold 75% of its Bitcoin holdings, Musk assured the community that the company would continue to hold its Dogecoin position.
There has been no response from Musk, Tesla, SpaceX, Boring, or the Dogecoin Foundation regarding the lawsuit.