As the U.S. presidential election on November 5 approaches, billionaire Elon Musk previously announced that he would randomly distribute $1 million daily to American voters in strong support of Trump's campaign. He was sued on Monday (October 28) by Philadelphia District Attorney Larry Krasner and was ordered to attend an emergency hearing. Following the news, the Dark MAGA (DMAGA) political meme coin plummeted.
Musk's daily $1 million distribution to voters, conditional on signing the America PAC petition by swing state voters, will continue until the presidential election on November 5, but it is currently halted due to legal disputes.
America PAC is an organization founded by Musk to fundraise for former President Donald Trump, having received $75 million in donations from Musk in just the past three months. Therefore, this activity is considered aimed at encouraging more swing state voters to support Trump, but it has also sparked legal controversies. The U.S. Department of Justice recently warned that this move may have already violated federal laws.
On Monday, Philadelphia District Attorney Larry Krasner filed a lawsuit against Musk and America PAC, accusing them of operating an illegal lottery and attempting to influence the presidential election. Krasner hopes to use legal means to stop Musk from continuing this activity.
According to U.S. CNBC reports, Judge Angelo Foglietta requested that Musk and representatives from America PAC must attend an emergency court hearing in Philadelphia on Thursday morning to respond to Krasner's attempt to stop him and America PAC from continuing to award $1 million prizes to registered voters in Pennsylvania.
Krasner's lawyer pointed out in court documents that the lottery activity is deceptive because America PAC has not published clear lottery rules or explained how to protect participants' personal information. Additionally, the lawsuit stated that although Musk claims the selection of winners is random, this statement seems inconsistent with reality, as several selected winners were individuals who attended Trump rallies in Pennsylvania.
The lawyer added that the lawsuit has sparked a large number of posts from Musk's followers on social media, many of which launched anti-Semitic attacks against Krasner, with some even threatening to visit his home. Therefore, Krasner's lawyer requested the judge to order increased security for the hearing.
Recently, as Musk has clearly expressed support for Trump, the latter's campaign seems to have been successfully hyped. Additionally, Musk has not forgotten his identity as the 'Father of Dogecoin' and has once again publicly promoted Dogecoin, tweeting a photo of himself supporting Trump while wearing a 'Make America Great Again' (MAGA) hat, raising his fist, along with a similar photo of a Shiba Inu.
Dogecoin's price has surged by 21.6% in the past week, becoming the cryptocurrency with the highest daily increase among the top 100 by market capitalization for several days.
However, following the negative news of the lawsuit, meme coins such as Dogecoin, MAGA, and DMAGA fell sharply.
Previously, Trump stated that if he wins, he would invite Musk to lead a government spending audit and implement strong reforms by establishing the Department of Government Efficiency (D.O.G.E.), which influences Dogecoin's price movements. This proposal aims to reduce government waste, fraud, and unnecessary spending suggestions.
