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 way of dogecoin cryptocurrency.” The lawsuit states that Musk and his companies “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”
Elon Musk, Spacex and Tesla Sued Over Dogecoin
Bloomberg reported that Keith Johnson, Dogecoin’s investor filed a class-action suit against Elon Musk, Spacex, and Spacex on Thursday.
In the suit, it is stated:
The defendants Elon Musk and Spacex are involved in a cryptocurrency pyramid scheme, also known as a Ponzi scheme, using dogecoin cryptocurrency.
The plaintiff argued that DOGE is “simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”
According to the court document, Johnson is an American citizen who said he was “defrauded out of money by defendants’ dogecoin crypto pyramid scheme.” He claimed that Musk, Tesla, and Spacex constitute an illegal racketeering enterprise to inflate dogecoin’s price.
It describes:
The defendants falsely claim and mislead that dogecoin can be a legitimate investment, even though it is of no real value.
“Since defendant Musk and his corporations Spacex and Tesla Inc. began purchasing, developing, promoting, supporting, and operating dogecoin in 2019, [the] plaintiff and the class have lost approximately $86 billion in this crypto pyramid scheme,” the court document details.
Johnson represents crypto investors that have lost their money in trading dogecoins since April 2019 and Johnson wants to be a representative of them.
The plaintiff is seeking $86 billion and triple damages in the amount of $172 billion. Additionally, he seeks to block Musk, Spacex, Tesla, and Tesla’s promotion of dogecoin. He declares that DOGE Trading is gambling as defined by U.S. and New York laws.
Tesla CEO Elon Musk has promoted dogecoin via Twitter. He said the meme cryptocurrency has potential as a currency, calling it the people’s crypto.
He stated that Spacex would soon be accepting DOGE merchandise, and Starlink subscriptions might follow. Tesla accepts some meme coins for merchandise. Musk also talked about accepting payments in dogecoin to some Twitter services, if he is the new owner.
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