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US$258 billion lawsuit filed against Elon Musk and Tesla over alleged Dogecoin pyramid scheme

A disgruntled Dogecoin investor from the US is taking legal steps against Elon Musk and his companies Tesla and SpaceX (Image: Kanchanara)
A disgruntled Dogecoin investor from the US is taking legal steps against Elon Musk and his companies Tesla and SpaceX (Image: Kanchanara)
An upset Dogecoin investor claims that Musk and his companies artificially inflated the price of the well-known cryptocurrency Dogecoin, which consequently caused massive losses when the meme coin shed 93% of its value after skyrocketing to an all-time high in the first half of 2021.

Crypto investors around the world are still coping with the disastrous decline in value of their digital assets that occurred over the past six months. While many investors quietly accept that these risky and speculative investments have caused significant losses for the time being, a disgruntled crypto investor from the US is now making headlines with a recently filed lawsuit.

None other than the eccentric entrepreneur Elon Musk is being accused of deceptively advertising the cryptocurrency Dogecoin as a legitimate investment even though the meme coin supposedly has no true value. The lawsuit also targets Musk’s two companies Tesla and SpaceX, which allegedly were part of this “illegal racketeering enterprise”. At the Texas-based automaker Tesla, fans can for example purchase the quite peculiar Cyberwhistle and other merchandise items with the Dogecoin cryptocurrency.

The plaintiff named Keith Johnson is therefore suing for damages totaling US$258 billion in a federal court in the New York borough of Manhattan. In theory, this astronomical sum could not only be awarded to him, but potentially to all affected Dogecoin investors who he seeks to represent in this class action lawsuit. Johnson further asks that Elon Musk and his aforementioned companies Tesla and SpaceX should be prohibited from advertising and promoting Dogecoin in the future. It remains to be seen if this bold crypto lawsuit against Elon Musk will succeed. With a total net worth of currently US$214 billion, even the world’s richest man would not be able to pay these kind of damages out of his own pocket.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2022 06 > Elon Musk and Tesla sued for US$258 billion in alleged Dogecoin pyramid scheme
Enrico Frahn, 2022-06-19 (Update: 2022-06-19)