Home » US business news » More Dogecoin investors join $258 billion lawsuit against Elon Musk

More Dogecoin investors join $258 billion lawsuit against Elon Musk

By Hugh Fort in US business news, posted September 11, 2022

More investors have joined a $258 million lawsuit against Tesla billionaire Elon Musk which accuses him of running a Dogecoin pyramid scheme.

The case was first filed in June by New England electrician Keith Johnson.

Now, it has seen seven more plaintiffs come forward, who are all investors who lost money after investing in Dogecoin - a cryptocurrency.

Musk's construction business Boring Co and the Dogecoin Foundation have also been called as defendants.

Other defendants in the case include Dogecoin developers, online influencers who pushed the digital asset, and Billy Markus and Jackson Palmer, the software developers who founded Dogecoin, initially referring to the project as a joke.

What does the lawsuit claim?

The suit claims the defendants massively drove up the price of Dogecoin by an astonishing 36,000 percent over two years.

Lawyers say the currency was deliberately crashed, leaving them to walk away with tens of billions at the expense of their investors.

Musk is involved because in May 202 he appeared on Saturday Night Live he called Dogecoin a "hustle" during a sketch.

This is said to have caused a real-time crash in Dogecoin prices.

It never recovered and is now thought to be have lost about 90 percent in value, according to data from CoinGecko.

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