Elon Musk and his firms are being sued for $258 billion over an alleged Dogecoin “pyramid scam”



A $258 billion lawsuit has been filed against Elon Musk and two of his firms; Tesla and SpaceX, after an investor said he was “defrauded” by a Dogecoin “pyramid scam”

In a complaint filed in Federal court in Lower Manhattan on Thursday June 16, the investor, Keith Johnson identified the entrepreneur, as well as his companies Tesla and SpaceX.

Mr Johnson is seeking $86 billion in damages as well as $172 billion in tripled damages for losses incurred from trading Dogecoin since 2019, and an injunction prohibiting Musk and companies from promoting the cryptocurrency and declaring that Dogecoin trading is gambling under US and New York law.

On Thursday, one Dogecoin cost a little under six cents, a far cry from its all-time high. A high of 75 cents was reached in May 2021.

“Dogecoin is not money, stock or other type of investment. It is not backed by gold, silver or any other precious metal. The lawsuit claims that “you can’t eat it, grow it or wear it”

“It doesn’t pay dividends or interest” in comparison to other cryptocurrencies, it has no special utility. It is not protected by the government or a private company.

“It’s merely a ruse in which ‘bigger idiots’ are duped into paying a higher price for the coin”

According to the court complaint “since defendant, Musk and his firms; Tesla and SpaceX Inc. began purchasing, producing, promoting, supporting, and mining Dogecoin in 2019, (the) plaintiff and the class have lost nearly $86 billion in this crypto pyramid scam.

Mr Johnson is interested in representing other investors, who have lost money in Dogecoin since April of 2019.

Despite billions being wiped off the value of Bitcoin, Ethereum and Dogecoin, Mr Husk, who has a personal worth of $217 billion vowed in March that he would not sell them.

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