A $258 billion lawsuit has been filed against Musk, Tesla, and SpaceX.
After one man sued Tesla (NASDAQ:TSLA), SpaceX, and Elon Musk for $258 billion, Dogecoin (DOGE-USD) has gotten a lot of attention. The defendant’s “Dogecoin Crypto Pyramid Scheme” allegedly cheated the victim, Keith Johnson, of money. Musk and his two firms, he alleges, are part of a criminal racketeering operation that intends to increase the price of Dogecoin.
Dogecoin is an open-source, peer-to-peer cryptocurrency founded by Billy Markus and Jackson Palmer in 2013. The dog-themed coin was made as a prank and has a hilarious provenance.
Musk has been a vocal proponent of cryptocurrency, often tweeting encouraging comments about it. On the Tesla website, the Tesla Shop accepts Dogecoin for select goods. The currency is likely to be accepted as payment by SpaceX in the near future.
The coin’s price reached a high of 73 cents last year. Around the same time, Musk appeared on Saturday Night Live to talk about cryptocurrency. Currently, the price is about 5 cents.
Let’s dive into the specifics of the Dogecoin pyramid scheme case with that in mind.
Musk, Tesla, SpaceX, and the Lawsuit Against the “Dogecoin Pyramid Scheme“
In a Manhattan court, the complaint was filed.
“Defendants erroneously and deceptively claim that Dogecoin is a legal investment when it has no value at all,” Johnson alleges.
Johnson is also attempting to represent a group of folks who have lost money on Dogecoin since April of this year.
He is seeking $86 billion in damages, as well as $172 billion in treble damages.
Johnson also seeks an injunction prohibiting Musk and any Musk-affiliated firms from promoting Dogecoin.
He also wants cryptocurrency trading to be classified as gambling under federal and state laws in the United States and New York.
Dogecoin is neither a money, stock, or investment, according to the complaint. It’s also not supported by anything to back up its pricing.
The crypto is described as “just a swindle in which ‘bigger idiots’ are fooled into purchasing the currency at a higher price,” according to the petition.
Musk also exploited his rich power to control Dogecoin for his own selfish objectives, according to the suit.
Musk and Tesla and SpaceX spokespeople did not immediately reply to Bloomberg’s request for comment.