Elon Musk Sued For $258 Billion Over Alleged Dogecoin Pyramid Scheme
Elon Musk may be the richest man in the world, but he’s currently facing a lawsuit that’s seeking damages even higher than his net worth. The billionaire alongside his companies Tesla and SpaceX are named in a class action lawsuit that claims they’re involved in a racketeering scam using Dogecoin.
Court documents reveal the lawsuit was filed by Keith Johnson on June 16th in the Southern District Court of New York in Manhattan.
Keith claims Elon and his companies used a pyramid scheme to inflate the price of the cryptocurrency while simultaneously convincing the public Dogecoin is safe and legitimate. Keith also claims that Dogecoin has “no real value” as a currency.
Kotaku explains that the plaintiff is seeking a total of $268 billion in damages. He also wants a legal order that would prevent Elon from promoting Dogecoin.
Keith claims that he was personally defrauded because of Elon and Dogecoin. But he filed the case as a class action lawsuit in hopes of teaming up with other cryptocurrency investors who lost after trading Dogecoin from April 2019 and onwards.
Elon’s alleged involvement in a Dogecoin pyramid scheme comes after Dogecoin’s co-creator Jackson Palmer slammed the billionaire in an interview.
"He's a grifter. He sells a vision in hopes that he can one day deliver what he's promising, but he doesn't know that," Jackson told Crikey. "He's just really good at pretending he knows. That's very evident with the Tesla full-self-driving promise."
Elon was quick to respond to Jackson’s words. "My kids write better code when they were 12 than the nonsense script Jackson sent me," he wrote via Twitter, referencing script Jackson had previously showed him.
Elon has found himself involved in several headline-worthy lawsuits this year alone. In May, it was reported that the Tesla founder was being sued over his $44 billion deal to buy Twitter. The lawsuit argues that because Elon was an “interested shareholder” before the deal, it can’t be finalized before 2025, as per Delaware law.
Elon has since put his plans to buy Twitter on hold. His announcement came in May. Elon explained he’s waiting for more information on spam accounts statistics, though he’s still committed to buying the social media platform.
The businessman has said he hopes to run Twitter in order to make it more “politically neutral,” even confirming that he’ll reinstate former U.S. President Donald Trump’s account despite being accused of helping instigate the 2021 attacks on Capitol Hill.
Sources: Kotaku, Pacer Monitor, Crikey,
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