Elon Musk is on trial in a bizarre $ 258 billion lawsuit from a Dogecoin investor who claims that the frontman of Tesla and SpaceX ran a pyramid scheme in support of the cryptocurrency.
Dogecoin investor Keith Johnson said in a lawsuit in federal court in Manhattan that Musk racketeered by raising the price of Dogecoin and then letting it fall to levels well below its highest levels. all times.
The complaint was seen by Reuters.
“Since 2019, defendants have known that Dogecoin has no value, it has still encouraged Dogecoin to profit from its trade,” the complaint said. Musk voiced support for several cryptocurrencies last year, including Dogecoin and Bitcoin. Tesla has even begun accepting both cryptocurrencies for purchases of certain products, but has abandoned bitcoin payments as the carmaker has recognized the potential climate challenges that come from mining the coin.
However, Johnson claims that Musk manipulated Dogecoin for his own pockets by promoting cryptocurrency in the complaint. “Musk uses his pedestal as the richest man in the world to manage and manipulate the Dogecoin pyramid scheme for profit, exposure and entertainment.
Johnson wants Musk to pay $ 86 billion in damages from the loss of Dogecoin in May 2021, but wants to triple that amount. The judge will have to decide if this is realistic. He is also looking for a potential provision that would restrict Musk or any of his companies from promoting Dogecoin. In addition, Johnson would like a judge to declare that the Dogecoin trade is gambling under federal and New York law.
Dogecoin jumped to record highs last May, reaching $ 0.74, after being valued at a penny just months ago. However, the biggest jump came just before Musk appeared on Saturday Night Live. When Musk appeared on the show, Dogecoin investors began selling cryptocurrencies, leading to a collapse in value. The complaint alleges that Musk’s fictional character in SNL called Dogecoin a “burden” that persuaded investors to sell the shares and made him lose $ 86 billion.
Johnson v. Musk et al., U.S. District Court, Southern District of New York, № 22-05037.
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Elon Musk is suing for $ 258 billion in a bizarre lawsuit against Dogecoin
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