Elon Musk, Tesla, SpaceX Sued for $258 Billion Dogecoin ‘Pyramid Scheme’

Is Elon Musk’s promotion of Dogecoin coming again to chew him? The billionaire and his corporations at the moment are being sued for $258 billion for participating in a so-called “crypto pyramid scheme” by the use of the meme coin.

Sued for Memes?

As reported by the New York Submit, the federal lawsuit was filed in Decrease Manhattan by plaintiff Keith Johnson. He named Musk, his automobile firm, and area exploration agency within the lawsuit’s papers.

Johnson is requesting $86 billion in damages from the CEO, alongside $172 billion for losses incurred on Dogecoin trades since 2019. He intends to characterize those that misplaced cash buying and selling the meme-coin following Musk’s promotion of it – one thing he additionally calls for that Musk stop doing.

Dogecoin was developed inside only a few hours by co-creators Billy Markus and Jackson Palmer in late 2013. Neither being a lot all in favour of blockchain expertise, the companions solely launched the cryptocurrency as a satire on the varied different ineffective cryptos rising on the time.

“Dogecoin isn’t a foreign money, inventory, or safety,” reads the court docket submitting. “It’s not backed by gold, different treasured steel, or something in any respect. You possibly can’t eat it, develop it, or put on it.”

Paradoxically, Dogecoin is without doubt one of the solely few cash to outlive since then, supported by the energy of its meme. A Grayscale report from final 12 months discovered that it’s really a extra acknowledged crypto than Ethereum.

Elon’s Affect

Its reputation was particularly boosted by Elon Musk in early 2021 when he started tweeting about it repeatedly to his hundreds of thousands of followers. The occasion made Dogecoin the primary main altcoin to ever surpass its all-time excessive in BTC phrases following multiple bull market.

It’s misplaced nearly all of its worth since then, nevertheless, declining over 90% from $0.73 on the high to only $0.05 in the present day. Because the lawsuit explains, Doge has “no distinctive utility,” in comparison with different cryptos, nor any treasured steel or curiosity funds backing its worth.

“It’s merely a fraud whereby ‘better fools’ are deceived into shopping for the coin at a better value,” it reads.

Elon Musk’s affect on Dogecoin’s value remains to be prevalent. The coin pumped when he introduced that SpaceX would settle for it for merch funds final month, as when he started finalizing his bid to purchase Twitter.

The billionaire introduced in March that he had no plans to promote any of his Bitcoin, Ethereum, or Dogecoin holdings, regardless of the bear market.

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