Elon Musk’s New Dogecoin Drama: A Billion-Dollar Crypto Con
TL;DR: Musk, his empire, and a handful of fresh suits are being charged with running a pyramid scheme that raked in billions by inflating Dogecoin to the moon, only to see it crash back to Earth. The lawsuit just got bigger—with more plaintiffs, more defendants, and a fresh dose of legal drama.
What’s the Deal?
On Tuesday night (Aug 6), a Manhattan federal court got a revised complaint that looks a little like a blockbuster thriller: Musk, Tesla, SpaceX, Boring Co., and the Dogecoin Foundation allegedly coordinated a scheme that made Dogecoin’s price shoot up by over 36 000 % in two years, then let it nosedive.
Key Claims
- E2 and the gang purposely pumped Dogecoin up the market.
- They sold the dog before the doge got scared, making tens of billions in profit at the expense of everyday investors.
- The complaint says Musk knew Dogecoin was pure marketing hype—not real value.
New Faces on the Courtroom Stage
- Seven fresh investor plaintiffs joining the lawsuit.
- Six new defendants now in the spotlight, including Boring Co. (Musk’s tunnel empire).
- Dogecoin’s so‑called “nonprofit” foundation also in the mix—though it hasn’t responded yet.
So, who’s who?
- Elon Musk (CEO, Bus? You’ll guess who.)
- Tesla Inc. (cars you can drive, now also seemingly dealing in digital moons).
- SpaceX (rocket science & crypto whale vibes).
- Boring Co. (tunnels, oil canals, the Economist isn’t on the NBA draft list).
- Dogecoin Foundation (pretend nonprofit, with marketing in its DNA).
Legal Monster Money
The lawsuit is demanding a whopping $258 billion in damages—triple the amount Dogecoin’s market has lost since May 2021.
That’s a lot of zeros, but here’s the scoop: Dogecoin was trading around $0.06 Wednesday — down from a sparkling $0.74 back in May 2021.
What’s Been Said? Or Not Said?
- Tesla’s media relations garage was shuttered back in 2020, so the company’s silence is expected.
- SpaceX and Boring Co. haven’t commented yet.
- The Dogecoin Foundation hasn’t responded either.
Behind the Scenes
Remember when Musk, playing a tongue‑in‑cheek “financial wizard” on SNL’s Weekend Update called Dogecoin a “hustle”? Well, the amended complaint claims he was a bit too honest about the crypto vibe.
When the Dog (or the Doge) Gets Scared
The alleged tactic: Fire the engine, let the price soar, then let the doggo take a dip. Investors lose, Musk and his crew gain—classic “cave later” but for cryptocurrencies.
All in all, the case, Johnson et al v. Musk et al, is rolling in the US District Court, Southern District of New York (Case No. 22‑05037).
Stay tuned—this saga just got a fresh ensemble cast and a new budget. The courtroom drama is about to get even more intense.
