Elon Musk Struck With a $258 Billion Lawsuit Alleging Him Over Dogecoin Pyramid Scheme

A $258 billion lawsuit has been filed against SpaceX CEO Elon Musk, alleging Elon of running a dogecoin pyramid scheme. The lawsuit goes against Elon and his firms, alleging that they “are engaged in a crypto pyramid scheme by way of dogecoin cryptocurrency.”

The petitioner, Keith Johnson, names Musk, his electric car manufacturer, Tesla, and the space tourism enterprise SpaceX in federal court papers submitted in Lower Manhattan.

The lawsuit against Elon Musk demands $86 billion in damages

Keith Johnson, the petitioner, and US citizen, seek $86 billion in damages and an additional $172 billion for the losses incurred for trading dogecoin from 2019. Through the lawsuit, he also represents various other investors who have lost their money in dogecoin.

Johnson’s lawsuit also demands Elon Musk, Tesla, and SpaceX halt promoting dogecoin.

“Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it.”“It doesn’t pay interest or dividend. It has no unique utility compared to other cryptocurrencies…It’s not secured by a government or private entity.”

Lawsuit cites

Elon Musk hasn’t yet responded to the lawsuit. Elon has begun accepting DOGE for Tesla merch and announced that SpaceX might soon follow the same.

In recent years, the billionaire has emphasized his cryptocurrency investments. Despite rising inflation and economic uncertainty that has caused many investors to sell risky assets, he said in March that he “won’t sell” his bitcoin, Ethereum, and Dogecoin holdings.

Dogecoin (DOGE) is currently trading at $0.05755 with a 24-hour trading volume of $933,987,208. It is trading 92% down from its all-time high of $0.7376. Elon Musk’s tweet has always pumped DOGE for a short period of time and was a recurring scenario. The opportunity has been made use of by various investors too.