Elon Musk, Tesla, Spacex Facing $258 Billion Lawsuit for Promoting Dogecoin

Elon Musk, Tesla, and Spacex are being sued for $258 billion over claims that they “are engaged in a crypto pyramid scheme (aka Ponzi scheme) by the use of dogecoin cryptocurrency.” The lawsuit states that Musk and his corporations “falsely and deceptively declare that dogecoin is a professional funding when it has no worth in any respect.”

Lawsuit Filed Against Elon Musk, Spacex, Tesla Over Dogecoin

Dogecoin investor Keith Johnson filed a class-action lawsuit towards Elon Musk and his corporations, Tesla and Spacex, Thursday in federal court docket in Manhattan, Bloomberg reported.

The lawsuit states:

Defendants Elon Musk, Spacex, and Tesla Inc. are engaged in a crypto pyramid scheme (aka Ponzi scheme) by the use of dogecoin cryptocurrency.

The plaintiff argued that DOGE is “merely a fraud whereby ‘better fools’ are deceived into shopping for the coin at the next value.”

According to the court docket doc, Johnson is an American citizen who mentioned he was “defrauded out of cash by defendants’ dogecoin crypto pyramid scheme.” He claimed that Musk, Tesla, and Spacex represent an unlawful racketeering enterprise to inflate dogecoin’s value.

The criticism describes:

Defendants falsely and deceptively declare that dogecoin is a professional funding when it has no worth in any respect.

“Since defendant Musk and his firms Spacex and Tesla Inc. started buying, growing, selling, supporting, and working dogecoin in 2019, [the] plaintiff and the category have misplaced roughly $86 billion on this crypto pyramid scheme,” the court docket doc particulars.

Johnson is in search of to signify a category of crypto buyers who’ve misplaced cash buying and selling in dogecoin since April 2019.

He is asking for $86 billion in damages and triple damages of $172 billion. In addition, he’s in search of an order blocking Musk, Spacex, and Tesla from selling dogecoin, and declaring that DOGE buying and selling constitutes playing below U.S. and New York legislation.

The Tesla CEO has been selling dogecoin on Twitter. He mentioned the meme cryptocurrency has potential as a currency, calling it the individuals’s crypto.

In May, he mentioned Spacex will soon accept DOGE for merchandise and Starlink subscriptions may comply with. Tesla already accepts the meme coin for some merchandise. Musk has additionally mentioned permitting funds in dogecoin for some Twitter services if he turns into the proprietor of the social media platform.

What do you consider this lawsuit towards Elon Musk, Spacex, and Tesla over dogecoin? Let us know within the feedback part beneath.