Elon Musk is being sued by a Dogecoin investor for $258 billion over an alleged pyramid scheme.
Dogecoin investor is suing Elon Musk for $258 billion
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Elon Musk was sued for $258 billion by a Dogecoin investor on Thursday. The plaintiff accuses Musk of running a Ponzi scheme to support cryptocurrency. This is reported by the news portal Reuters.
In the lawsuit, filed in U.S. federal court in Manhattan, the investor accuses electric car company Tesla and space tourism company SpaceX of profiteering because they touted the cryptocurrency Dogecoin and drove up the price, only to see the price fall to let.
“Defendants knew Dogecoin had no value since 2019 but promoted Dogecoin to profit from trading,”
says the lawsuit.
“Musk used his status as the richest man in the world to run a dogecoin pyramid scheme, manipulate and make profit, profile and enjoy himself.”
The complaint also summarizes comments from Warren Buffett, Bill Gates, and others questioning the value of cryptocurrencies.
Investor demands damages times 3
Investor Keith Johnson is seeking $86 billion in damages, equivalent to the decline in Dogecoin’s market value since May 2021 – but the investor claims to have tripled that amount, i.e. $258 billion. He also wants Musk and his companies to be banned from promoting Dogecoin. The investor also wants a court order declaring that trading in Dogecoin is gambling under federal and New York law.
The lawsuit alleges that the Dogecoin sell-off began around the time Musk was the host of NBC’s Saturday Night Live and played a fictional financial whiz in a Weekend Update post who described Dogecoin as a “rip-off ” referred to.