Dogecoin investor sues Elon Musk for $258 billion over alleged pyramid scheme

Keith Johnson, a Dogecoin investor, has filed a lawsuit against billionaire Elon Musk. Plaintiff Keith Johnson put forth a complaint in federal court in Manhattan accusing Musk of racketeering for promoting coin and pushing up its value. This comes after Elon Musk announced last year that he will take Dogecoin as payment for Tesla cars. This resulted in the cryptocurrency skyrocketing in popularity.

“Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading,” the complaint said. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure, and amusement.” Highlighting Musk’s role in what he called a “Dogecoin Crypto Pyramid Scheme,” Johnson has submitted his tweets including one promising that SpaceX would “put a literal Dogecoin on the literal moon.”

The complainant demands judge to rule trading Dogecoin as gambling

Johnson has sought for his move to be designated as a class-action suit. He cited statements from Warren Buffett, Bill Gates, and others who have questioned the value of bitcoin. The case was launched on behalf of those who have lost money investing in cryptocurrency since 2019. It was to be a fun crypto coin for light-hearted traders. Moreover, it comes into the category of meme coin that exploded in prominence after Musk’s support.

Keith is demanding $86 billion in damages or three times the value of the coin’s market price from May 2021. He also demands that a judge to rule that trading Dogecoin constitutes gambling under federal and New York law; and to stop Musk and his firms from promoting the cryptocurrency. There is no response from Johnson’s lawyers regarding what evidence his client has or intends to have that indicates Dogecoin is worthless and the accused are running a pyramid scheme.

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