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Elon Musk sued for $258 billion for alleged Dogecoin scam

Luneika by Luneika
June 21, 2022
Reading Time: 2 mins read

After the depreciation of 93% in 14 months of the dogecoin cryptocurrency (DOGE), Elon Musk and his companies Tesla and SpaceX were sued for having encouraged their purchase. The lawsuit was filed in federal court in Manhattan, New York, by a US citizen named Keith Johnson.

The plaintiff alleges that he was defrauded by “the dogecoin pyramid scheme” promoted by Elon Musk, Tesla and SpaceX. He identifies them as an illegal extortion organization for inflating the price of said cryptocurrency.

“Defendants falsely and misleadingly claim that dogecoin is a legitimate investment when it is worthless“, the plaintiff said.

All 26 Pages of the Keith Johnson vs Elon Musk $258 Billion Dollar Lawsuit ?#dogecoin https://t.co/ZcTslB13et

— akaCURTatoshi⚡️Sharkamoto (@FinTechShark1) June 20, 2022

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On different occasions the price of dogecoin got a strong rise after the mention of the billionaire in his social networks or other means. Some analysts have called this phenomenon the “Elon Musk effect“.

I will keep supporting Dogecoin

— Elon Musk (@elonmusk) June 19, 2022

Through his lawsuit, Johnson is asking the billionaire and his companies for USD 86 billion in damages and USD 172 billion for treble damages. With this, he seeks to represent those people who lost their money investing in cryptocurrency since April 2019.

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