Elon Musk, Tesla and SpaceX Sued for Alleged Dogecoin Crypto Pyramid Scheme | Economy

Businessman Elon Musk and the companies SpaceX and Tesla are sued for alleged pyramid scheme with the cryptocurrency Dogecoin, according to the American press.

American Keith Johnson asked for US$ 258 billion in compensation after losing a lot of money on the currency.

In the complaint filed in a court in Manhattan, New York, on Tuesday, Johnson alleges that he “is an American citizen who has been defrauded of money” and that the defendants “mistakenly claim that Dogecoin is a legitimate investment when it is not has no value”.

“Defendants were aware since 2019 that Dogecoin had no value but still promoted it to profit from its trading. Musk used his pedestal as the richest man in the world to operate and manipulate the Dogecoin pyramid scheme for profit, exposure and enjoyment. “, says the complaint.

  • Dogecoin, the ‘meme-coin’: know what it is and the risks of investing

Johnson is seeking $86 billion in damages, representing the decline in Dogecoin’s market cap since May 2021, and wants to triple the amount. He also calls for a ban on Dogecoin advertising by Musk and his companies.

Dogecoin started out as a joke and ended up becoming the 7th largest asset of its kind by market cap in August last year, according to website Coinmarketcap.

In 2021, Dogecoin gained new prominence at the hands of Elon Musk. The Tesla founder’s Twitter posts were mainly responsible for the jump in appreciation that the “meme-cryptocurrency” had that year.

It was the billionaire’s enthusiasm that made Dogecoin soar 1,100% in one month, between April 7th and May 7th. Musk stated that he bought the currency, believed in his project and, days after the peak of appreciation, even said that he started working with developers to improve it.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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