Dogecoin investor sues Elon Musk for $258 billion for cryptocurrency backing

Dogecoin investor sues Elon Musk

A trader in dogecoin, originally planned to be a joke but its price goes up and down as backed by Elon Musk, filed a $ 258 billion lawsuit on Thursday against the billionaire and his companies Tesla and SpaceX.

Keith Johnson who said the money was lost when it was put into dogecoin,described himself as an “American citizen who was defrauded” by what he called a “Dogecoin Crypto Pyramid Scheme.”Dogecoin investor sues Elon Musk

He asks that his proposal, presented in a courtroom in New York, be classified as a class action lawsuit by those who have suffered losses from investing in dogecoin since 2019.

Since Musk began promoting the virtual currency, investors have lost about $ 86 billion, Johnson estimates. Musk would like to repay that amount to investors, as well as pay twice as much damages – an additional $ 172 billion.

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Dogecoin investor sues Elon Musk Details

Founded in 2013, the dogecoin makers claim that it was made as an incomprehensible solution to two major events on the Internet: cryptocurrencies such as bitcoin and a meme image of the dog Shiba Inu.

The value of dogecoin trades at only one cent for the majority of its existence.But its value soared in early 2021, rising to $ 0.73 in May of the year as she was followed by the shopping frenzy surrounding the GameStop saga and funny messages from musk.On Thursday, however, this was less than six cents.

Johnson said he believes Musk increased “price, market capitalization and sales volume of Dogecoin” by promoting it.

He included tweets from Musk, the world’s richest man with more than 98 million followers on Twitter, including a promise that SpaceX “will actually launch Dogecoin in a month.”

Dogecoin investor sues Elon Musk Explained

Johnson named electric car maker Tesla Musk in the lawsuit, as it accepts dogecoin as payment for certain derivatives. SpaceX was also included for naming one of its satellites dogecoin.

Johnson compared dogecoin to a pyramid scheme because virtual currency has no intrinsic value and is not a product. In addition, it is not supported by a tangible asset and the number of “coins” is unlimited.

Suits are on the rise in the United States by investors who feel cheated by virtual currency promises.

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