Elon Musk sued for $258bn over Dogecoin support

Elon Musk sued for $258bn over Dogecoin support
Dogecoin was founded in 2013 and traded at just fractions of a cent for most of its existence (Shutterstock)
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Updated 17 June 2022

Elon Musk sued for $258bn over Dogecoin support

Elon Musk sued for $258bn over Dogecoin support

NEW YORK: An investor in Dogecoin, originally created as a joke but whose value increased and fell as it was promoted by Elon Musk, filed a $258 billion lawsuit Thursday against the billionaire and his companies Tesla and SpaceX.

Keith Johnson, who says he lost money after investing in Dogecoin, described himself as an “American citizen who was defrauded” by what he called a “Dogecoin Crypto Pyramid Scheme.”

He is asking for his motion, filed in a New York court, to be classified as a class action suit on behalf of those who have suffered losses by investing in Dogecoin since 2019.

Since Musk began promoting the virtual currency, investors have lost around $86 billion, Johnson estimates. He would like Musk to reimburse investors this sum, plus pay double that in damages — an additional $172 billion.

Founded in 2013, Dogecoin’s creators say it was intended as an ironic response to two big Internet phenomena: cryptocurrencies such as Bitcoin, and a meme image of a Shiba Inu dog.

The price of Dogecoin traded at just fractions of a cent for most of its existence.

But it saw its value leap at the beginning of 2021, rising to $0.73 in May of that year, amid a buying frenzy that surrounded the GameStop saga and after humorous messages about it from Musk.

On Thursday, however, it was worth less than six cents.

Johnson said he believes Musk increased “the price, market cap and trading volume of Dogecoin” through his promotion of it.

He included tweets from Musk, the world’s richest man who has more than 98 million followers on Twitter, including one promising that SpaceX would “put a literal Dogecoin on the literal moon.”

Johnson named Musk’s Tesla electric carmaker in the suit since it accepts Dogecoin as payment for certain derivative products. SpaceX was also included for having named one of its satellites after Dogecoin.

Johnson likened Dogecoin to a pyramid scheme since the virtual currency has no intrinsic value nor is it a product. Additionally it is not backed by a tangible asset and the number of “coins” is unlimited.

Suits by investors who feel cheated by the promises of virtual currency are on the rise in the United Sates.


Here’s what you need to know before Tadawul trading on Sunday

Here’s what you need to know before Tadawul trading on Sunday
Updated 13 sec ago

Here’s what you need to know before Tadawul trading on Sunday

Here’s what you need to know before Tadawul trading on Sunday

RIYADH: Saudi Arabia’s stock market concluded four out of five sessions in green last week, bolstered by strong earnings from most listed companies.

TASI, the main index, gained 0.8 percent to 12,530 on Thursday, while the parallel market Nomu was up 0.8 percent to 22,023.

Qatar led the gains in the Gulf to close 1.3 percent higher, followed by Abu Dhabi’s index with a 1 percent gain.

Bahrain and Kuwait added 0.9 and 0.1 percent, respectively, while Dubai and Oman were down 0.3 and 0.7 percent, respectively.

Elsewhere in the Middle East, the Egyptian blue-chip index EGX30 edged up 0.2 percent.

Oil prices settled lower on Friday, dragged down by fears over a potential recession.

Brent crude exited the week at $98.15 a barrel, while US West Texas Intermediate reached $92.09 a barrel.

Stock news

Aramco’s profit surged 90 percent in the second quarter of 2022 to SR182 billion ($48.4 billion), beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019

Saudi Tadawul Group Holding Co. posted a 23 percent first-half profit decline to SR278 million

National Gas and Industrialization Co. will distribute SR0.85 per share in cash dividends for the first half of 2022

Alandalus Property Co. reported SR35 million in profit for the first half of the year, down 8 percent from the same period a year ago

The National Agricultural Development Co., known as Nadec, turned into profits of SR43 million during the first half of 2022

Saudi Chemical Co. posted a 32 percent drop in first-half profit to SR47 million

Tanmiah Food Co.’s profits rose 43 percent to SR32 million during the first half of 2022

Bupa Arabia for Cooperative Insurance approved the re-appointment of Loay Hisham Nazer as chairman of the board and Martin Fletcher as vice chairman

Maharah Human Resources Co. reported a 26 percent decline in half-year profit to SR52 million

Academy of Learning Co. saw its profit rise 10 percent to SR8 million in the first six months of 2022

Calendar

August 14, 2022

Close of Naba Alsaha Medical Services Co.’s IPO subscription

August 15, 2022

Naqi Water Co. will start trading its shares on the Saudi Exchange’s main market


Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales
Updated 40 min 22 sec ago

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

RIYADH: Saudi Arabia’s National Agricultural Development Co. turned in profits during the first half of 2022 helped by a surge in sales of dairy and food processing.

The company turned green with a profit of SR43 million ($11 million) in the first six months of the year from losses of SR10.98 million in the same period last year, according to a bourse filing.

The company attributed the result to an 18 percent growth in sales of dairy and food processing, leading to a 21 percent revenue increase.


Saudi Chemical's first-half profit slips 32% to $13m

Saudi Chemical's first-half profit slips 32% to $13m
Updated 48 min 43 sec ago

Saudi Chemical's first-half profit slips 32% to $13m

Saudi Chemical's first-half profit slips 32% to $13m

RIYADH: Saudi Chemical Co. saw its profit drop 32 percent during the first half of 2022 to SR47 million ($13 million), from SR68 million in the prior-year period, a bourse filing showed.

The chemical producer attributed the profits decline to a 6 percent decrease in gross profit during the first six months of 2022 to SR241 million.

The increase in finance costs combined with losses from interest rate hedging and foreign currency revaluations also contributed to decline.


Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn

Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn
Updated 33 min 56 sec ago

Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn

Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn
  • The oil giant was expected to report $46.2 billion in net income based on 15 analyst forecasts.
  • Profits of “the most profitable oil company in the world” hit SR182 billion ($48.4 billion) after revenue soared 80 percent to SR562 billion.

RIYADH: Saudi Aramco’s profit has surged 90 percent in the second quarter of 2022, beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019.

The oil giant was expected to report $46.2 billion in net income based on 15 analyst forecasts.

Profits of “the most profitable oil company in the world” hit SR182 billion ($48.4 billion) after revenue soared 80 percent to SR562 billion, according to a bourse filing.

This is up from SR148 billion in the prior quarter and SR95.5 billion in the second quarter of 2021.

The crude producer said the results were primarily driven by rising crude prices which soared to record highs earlier this year, higher volumes sold, and improved downstream margins.

“Our record second-quarter results reflect increasing demand for our products — particularly as a low-cost producer with one of the lowest upstream carbon intensities in the industry,” said CEO, Amin Nasser, commenting on the results.

“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential — both to help ensure markets remain well supplied and to facilitate an orderly energy transition,” he added.

Further to the solid results, Aramco maintained stable quarterly dividends at SR70.3 billion, representing a per-share payout of SR0.3198 to be paid on Sept. 7.

Capital expenditure during the quarter grew 25 percent to $9.4 billion as Aramco continued to invest and capture growth opportunities.

In terms of half-year performance, Aramco outperformed with an 86 percent profit surge to SR330 billion from SR177 billion a year earlier.

The Saudi-listed company almost doubled its revenue to SR1.03 trillion, compared to SR584 billion in the first half of 2021.

Buoyed by higher operating cash flow, Aramco managed to strengthen its balance sheet with a gearing ratio of 7.9 percent at June end, compared to 14.2 percent at the end of 2021.

“We expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts,” Nasser said.

“But while there is a very real and present need to safeguard the security of energy supplies, climate goals remain critical, which is why Aramco is working to increase production from multiple energy sources — including oil and gas, as well as renewables, and blue hydrogen.”

Recent highlights:

  • Aramco and Cognite, a global leader in industrial software, announced the launch of CNTXT, a joint venture based in the Kingdom, which will be headquartered in Riyadh. CNTXT will support industrial digitalization in Saudi Arabia and the wider Middle East and North Africa region.
  • Aramco was reported to weigh an initial public offering of its unit Aramco Trading Co. that could potentially raise over $30 billion, slated to become one of the world’s biggest listings this year.
  • Aramco joined hands with Thailand's national oil company PTT, as it expands its footprints in Asia. Both companies will work together in areas of blue and green hydrogen and various clean energy initiatives.
  • Aramco acquired US-based Valvoline Inc.’s global products unit in a $2.65 billion deal.

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed
Updated 14 August 2022

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed

RIYADH: Oil prices plunged around 2 percent on Friday, on expectations that supply disruptions in the US Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.

Futures, however, were still on track for a weekly gain.

Brent crude futures fell $1.45, or 1.5 percent, to settle at $98.15 a barrel, while US West Texas Intermediate crude $2.25, or 2.4 percent, to settle at $92.09 a barrel. Both contracts gained more than 2 percent on Thursday.

US offshore oil output to restart after pipeline fix

A damaged oil pipeline component that disrupted output at several offshore US Gulf of Mexico platforms was repaired late Friday, a Louisiana official said, with producers moving to reactivate some of the halted production.

A failed flange connecting two onshore pipelines operated by Shell Plc in Louisiana leaked an estimated two barrels of oil. The oil, which spilled onto an area covered with gravel, has been removed, said Chett Chiasson, executive director of the Greater Lafourche Port Commission, and the flange had been repaired by Friday evening, he said.

The spill halted the operation of two pipelines that bring oil from several production facilities off the Louisiana coast, curtailing about 600,000 barrels per day of output from Shell, Chevron Corp. and Equinor, according to two people familiar with offshore operations.

On Friday evening, the Amberjack and Mars pipelines that were stopped by the leak were back online and returning to normal service, after crews completed the repairs at the Fourchon booster station, Shell spokesperson Cindy Babski said.

Shell is also in the process of ramping up production at its three platforms that deliver Mars sour crude, an oil grade popular with refiners in the US and Asia, Babski added.

Russian oil flows to Czech Republic have resumed

Russian oil flows to the Czech Republic through the Druzhba pipeline resumed after more than a week on Friday evening, Czech pipeline operator MERO said, as transit fee payments were unblocked.

Supplies via the Druzhba pipeline had been suspended to the Czech Republic, Hungary and Slovakia since Aug. 4 because Western sanctions prevented paying transit fees to Ukrainian transit company Ukrtransnafta, Russian pipeline monopoly Transneft said on Tuesday.

A European bank has agreed to process the payment for the transit of Russian oil through Ukraine, removing the cause of the stoppage.

“Supplies of Russian oil through the southern branch of the Druzhba pipeline on the Czech territory resumed at 8 p.m. today (Friday),” MERO said in a statement.

Czech refiner Unipetrol, a unit of Poland’s PKN Orlen, confirmed its refineries again started receiving oil through Druzhba and added the week-long outage had not affected its operations.

(With input from Reuters)