Key Takeaways
- An American citizen by the title of Keith Johnson is searching for $258 billion in damages from Elon Musk for selling Dogecoin.
- Johnson claims Musk, Tesla and SpaceX had been a part of a “Crypto Pyramid Scheme” and had been partaking in unlawful racketeering.
- Dogecoin is presently 92% down from its all time excessive.
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A lawsuit has been introduced towards Elon Musk, Tesla and SpaceX for taking part within the promotion of Dogecoin, which the accuser claims is a pyramid scheme.
A “Crypto Pyramid Scheme”
Elon Musk and his firms are being sued for selling Dogecoin.
Based on Bloomberg, the category motion lawsuit is dropped at them by Keith Johnson, an American citizen who claims to have been “defrauded out of cash by [Musk’s] Crypto Pyramid Scheme.” Johnson seeks a grand whole of $258 billion in damages. The case was filed immediately within the Southern District of New York.
The go well with issues Musk and his two flagship firms, SpaceX and Tesla. Johnson claims they had been a part of an unlawful racketeering scheme that aimed to inflate Dogecoin’s worth. “Defendants falsely and deceptively declare that Dogecoin is a legit funding when it has no worth in any respect,” Johnson stated within the grievance.
Elon Musk turned the richest man on the planet in 2021; his web value is presently estimated at $202 billion. The eccentric entrepreneur’s tweets had been a main driver behind Dogecoin’s meteoric rise final yr. The coin reached its all-time excessive across the time Musk devoted an complete sketch to it on Saturday Evening Dwell.
Johnson goals to symbolize a category of market members having misplaced cash on the notorious cryptocurrency. He’s asking for $86 billion in damages along with treble damages of $172 billion. Moreover, he needs for Dogecoin buying and selling to be declared playing underneath New York legislation, and for Musk and his firms to be forbidden from selling the coin ever once more.
Regardless of loudly advocating for the coin, neither Musk nor his firms are identified to have had any involvement in its growth. Dogecoin was created in 2013 by software program engineers Billy Markus and Jackson Palmer; it was the primary “meme coin” ever launched, which means that it purposefully had no use case and was marketed as such. Dogecoin is presently trading at round $0.05, a 92% drop from its all-time excessive of 73 cents.
Disclosure: On the time of writing, the creator of this piece owned ETH and a number of other different cryptocurrencies.
