A cryptocurrency investor from New York is suing Elon Musk for $258 billion over an alleged pyramid scheme via dogecoin.
The plaintiff, Keith Johnson, accuses Musk and his companies Space X and Tesla of inflating the price of dogecoin. 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, the Dogefather
Johnson, who the lawsuit refers to as an “an American citizen who was defrauded out of money” by the alleged Dogecoin Crypto Pyramid Scheme, is suing for $86 billion in damages. He wants an additional $172 billion and wants Musk and his companies to stop promoting dogecoin and that the cryptocurrency be declared gambling under U.S. and New York law.
The 26-page lawsuit claims that Musk, the self-proclaimed “Dogefather,” garnered help from countless celebrities to promote the crypto coin, including billionaire Mark Cuban. Dogecoin traded at over five cents on Thursday, down from its May 2021 high of over 70 cents, according to Reuters.