Elon Musk is being sued, along with his companies SpaceX and Tesla, for promoting Dogecoin as a Ponzi scheme. The complaint calls financial compensation 258 billion dollars.
Elon Musk is facing the law and $ 258 billion
It is a complaint filed by an American citizen named Keith Johnson. The latter believes that Elon Musk through its Tesla and SpaceX companies is at the forefront of Dogecoin scam. Therefore, Elon Musk’s goal would be to promote such a cryptocurrency to artificially inflate its price.
Keith Johnson has invested and attributed losses to him, so he seeks through his complaint compensation of up to $ 86 billion in damages, with the added bonus. $ 172 billion on behalf of a group of investors who allegedly lost money after buying Dogecoin in 2019.
In addition, this complaint seeks an order through this complaint preventing Musk and its companies from promoting Dogecoin. Finally, the latter requires Elon Musk and his companies to declare Bitcoin trading like gambling and not an investment under US and New York law.
Musk and Dogecoin
The lawsuit, issued last Thursday, accused Musk and his companies of promoting Dogecoin as an investment where there is no value. It’s true that Elon Musk often tweeted about this meme corner.
Elon Musk clearly seems to be influential the dogecoin price. For example, last March the Doge price jumped 8%. Simply because Elon Musk gave some tips for surviving economically during these difficult times and also the fact that he had to keep his BTC, ETH and Doge.
The complaint goes further claiming that Musk and his companies started buying, promoting and mining Dogecoin from 2019. So this caused this group of investors and Keith Johnson to lose about $ 86 billion from this scam.
Elon Musk has not yet commented on this case. It is true however that he has a history of promoting Dogecoin through his social networks and businesses. Earlier this year, Tesla announced that it had accepted Dogecoin as a payment method. In April 2021, Elon Musk announced that he wanted to put Dogecoin on the moon, causing Doge’s price to rise 10%.
That’s why it’s important to always do your own research before buying Dogecoin, or any other digital asset. Also, you should only invest the money you are willing to lose.