Elon Musk, Tesla, and SpaceX are being sued for $258 billion for allegedly “engaging in a crypto pyramid scheme (aka Ponzi scheme) with the dogecoin cryptocurrency.” The lawsuit states that Musk and his company are “falsely and deceptively claiming that dogecoin is a legitimate investment when it has absolutely no value.”
Lawsuits are filed against Elon Musk, Spacex, and Tesla over Dogecoin
Dogecoin investor Keith Johnson filed a class action lawsuit against Elon Musk and his companies Tesla and Spacex in Manhattan federal court on Thursday, Bloomberg reports.
The lawsuit includes.
Defendants Elon Musk, SpaceX, and Tesla Inc. are engaged in a crypto pyramid scheme (aka Ponzi scheme) with the dogecoin cryptocurrency.
Plaintiffs alleged that DOGE is “simply a scam where ‘bigger fools’ are deceived into buying coins at higher prices.”
According to court documents, Johnson is a U.S. citizen who was “defrauded out of his money by Defendants’ dogecoin crypto pyramid scheme.” He alleged that Musk, Tesla, and Spacex constituted an illegal racketeering scheme to inflate the price of dogecoin.
The complaint states.
Defendants falsely and deceptively claimed that the Dogecoin was a legitimate investment when it had no value at all.
“Since Defendant Musk and his companies Spacex and Tesla Inc. began purchasing, developing, promoting, supporting, and operating dogecoin in 2019, [Plaintiff and the Class have lost approximately $86 billion in this crypto pyramid scheme,” court documents detail.
Johnson seeks to represent a class of crypto investors who have lost money on Dogecoin transactions since April 2019.
He is seeking $86 billion in damages and $172 billion in treble damages. In addition, he seeks an order preventing Musk, Spacex, and Tesla from promoting dogecoin and declaring that DOGE transactions constitute gambling under U.S. and New York law.
Tesla CEO promotes dogecoin on Twitter. He said the meme cryptocurrency has potential as a currency and called it people’s crypto.
In May, he said Spacex would soon accept DOGE for its products and Starlink subscriptions could follow. Tesla already accepts meme coins for some of its products. Musk also discussed allowing Twitter to pay in DOGE coins for some of its services if it becomes the owner of the social media platform.
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