What are Dogecoin investors accusing Elon Musk of?

Another lawsuit by Dogecoin investors has been brought forward against Elon Musk. This complaint will be tacked onto the ongoing case of Johnson vs. Musk, which could cost Musk as much as $258 billion. Dogecoin investors accuse Musk of manipulating the price of the cryptocurrency and running a “pyramid scheme” to boost its value.

What is Elon Musk being accused of?

This time around, the plaintiffs are less focused on the negative opinions of Dogecoin voiced by Elon Musk and more on how he has used his power to manipulate the cryptocurrency’s price. The filings with the federal court in Manhattan accuse Musk of “carnival barking, market manipulation, and insider trading” with the intention of enriching himself at the expense of smaller investors. The new complaint cited Musk’s stunt on Twitter when he replaced the iconic bird icon with a picture of the Dogecoin dog. When the change was made, Musk sold $124 million in Dogecoin, which led to a short-term boost in the value of the coin.

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 engaging in racketeering. Johnson, an American citizen, claimed to have been a victim of the defendants’ Dogecoin Crypto Pyramid Scheme, resulting in financial loss.

The complaint continues: “Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.”

A lawsuit has been filed on behalf of individuals who have suffered financial losses while trading Dogecoin since April 2019. The lawsuit seeks $86 billion in damages, which the plaintiff is requesting be tripled.

In April 2023, Musk asked the court to throw out the case.