A Dogecoin investor has sued Elon Musk for $258 billion, accusing him of conducting a pyramid scheme. Plaintiff Keith Johnson filed a case in federal court in Manhattan accusing Musk, electric vehicle firm Tesla Inc, and space tourism company SpaceX of racketeering for promoting Dogecoin and pushing up its price, only to see it plummet. Musk is the founder and CEO of both Tesla and SpaceX.
Johnson v. Musk et al, No. 22-05037, U.S. District Court, Southern District of New York.
Warren Buffett, Bill Gates, and others have questioned the worth of Bitcoin, according to the plaintiffs.
According to the lawsuit, “Musk utilized his position as the World’s Richest Man to control the Dogecoins Pyramid Scheme for profit, exposure, and entertainment.
Requests for comment from the plaintiff’s lawyer on what particular proof his client has or expects to have to show Dogecoin is worthless and that the defendants conducted a pyramid scheme, were not immediately returned. Johnson wants a judge to declare that trading Dogecoins is gambling and to stop Musk and his companies from promoting it.
According to the complaint, Dogecoin’s depreciation began around the time Musk presented the NBC show “Saturday Night Live,” during which he referred to Dogecoin as a “scam” while portraying a fictitious financial expert in a “Weekend Update” spoof. Dogecoin was selling at roughly 5.8 cents on Thursday, down from a peak of over 74 cents in May 2021. In February 2021, Tesla said that it had bought $1.5 billion in bitcoin and would accept it as payment for cars for a short time.
According to Bloomberg, the plaintiff is also seeking an injunction prohibiting Musk and his firms from promoting Dogecoin, as well as a declaration that the Dogecoin trade is illegal under US and New York law. Musk and his firms are also being sued for promoting Dogecoins, according to the lawsuit.
Other well-known figures have expressed interest in DOGE, including Mark Cuban, the owner of the Dallas Mavericks, who has stated that he feels Dogecoin has potential as a payment system. Developers have been collaborating with Musk to make it a Bitcoin competitor. Despite being founded on a canine joke, Dogecoin may have some applications: Musk recently stated that SpaceX and Tesla will soon accept the cryptocurrency as payment.