Elon Musk, Tesla & SpaceX Sued For Promoting Dogecoin

Elon Musk, Tesla, and SpaceX have been sued for $258 billion for being allegedly “engaged in a crypto pyramid scheme (aka Ponzi scheme) by way of Dogecoin cryptocurrency.” Musk and his firms are accused of “falsely and deceptively claiming that dogecoin is a genuine investment when it has no value at all,” according to the lawsuit.

Keith Johnson, a Dogecoin investor, filed a class-action lawsuit against Elon Musk and his companies Tesla and SpaceX in federal court in Manhattan on Thursday, according to Bloomberg.

According to the lawsuit:
Defendants Elon Musk, SpaceX, and Tesla Inc. are engaged in a crypto pyramid scheme (aka Ponzi scheme) by way of Dogecoin cryptocurrency.

The plaintiff argued that DOGE is “simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”

Johnson is an American citizen who claims he was “defrauded out of money by the defendants’ Dogecoin crypto pyramid scheme,” according to the court statement. He alleged that Musk, Tesla, and SpaceX are involved in a criminal racketeering scheme to raise the price of Dogecoin.

The following is an excerpt from the complaint:
Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.

According to the court complaint, “Since defendant Musk and his corporations, SpaceX and Tesla Inc. began purchasing, developing, promoting, supporting, and operating Dogecoin in 2019, [the] plaintiff and the class have lost approximately $86 billion in this crypto pyramid scheme.”

Johnson is attempting to represent a group of cryptocurrency investors who have lost money since April 2019 trading in Dogecoin.

He is seeking $86 billion in damages, as well as $172 billion in triple damages totaling $258 Billion in all . He also wants an order prohibiting Musk, SpaceX, and Tesla from promoting Dogecoin, as well as a declaration that DOGE trading is gambling under the US and New York law.

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On Twitter, Tesla CEO Elon Musk has been supporting Dogecoin. He believes the meme cryptocurrency has financial potential, referring to it as the “people’s crypto.”

In May, he had claimed that SpaceX would soon accept DOGE for the purchase of products and that Starlink subscriptions could follow soon after. There are some Tesla products for which the meme coin is already accepted as payment. It has been reported that Musk has suggested that certain Twitter services should accept Dogecoin payments if he were to become the owner of the social media network.

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