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Elon Musk sued for $250 billion in damages over Dogecoin

 


Elon Musk and his companies Tesla and SpaceX have been indicted for allegedly being involved in a Ponzi scheme involving the cryptocurrency Dogecoin.


The lawsuit alleges that Elon Musk and his companies engaged in criminal activity and artificially inflated the price of Dogecoin.


Investor Keith Johnson claims that Elon Musk and the companies promoted Dogecoin as a legitimate investment, even though the token has no value at all. Johnson is representing a larger group of investors who lost money investing in the token and is seeking over $250 billion in damages. Dogecoin price is down over 90% since the last all-time high.


Elon Musk Dogecoin Complaint

The case is as Johnson v. Musk, 22-cv-05037, U.S. District Court, Southern District of New York (Manhattan).

Does Dogecoin have any value?

“ Defendants falsely and misleadingly claim that Dogecoin is a legitimate investment when it has no value at all, ” Johnson said in his lawsuit, which was filed in Manhattan federal court. Musk used his standing as the richest man alive to operate and manipulate the Dogecoin pyramid scheme for profit, exposure and fun .


“Dogecoin is not a currency, stock or security. It is not backed by gold, other precious metals or anything else. You can't eat it, grow it, or wear it," the lawsuit continues. "It's simply a scam to lure 'bigger fools' into buying the coin at a higher price."


The investor is alluding to the “greater fool theory” that Bill Gates recently mentioned when discussing crypto and the popular Bored Ape Yacht NFT collection. The investor Warren Buffet has already criticized the crypto market in this context.


Johnson is seeking $86 billion in damages, plus an additional $172 billion in compensation. Johnson also wants to get an injunction banning Elon Musk and his companies from advertising Dogecoin.


Doge course falls after Elon Musk news

In addition, the plaintiff wants the Dogecoin trade to be classified as gambling under federal and New York state law. The DOGE price fell by 6% after this news.

According to the indictment, the token sell-off began around the time Musk hosted the NBC show Saturday Night Live and played a fictional financial whiz in a Weekend Update segment who described Dogecoin as “gambling.” At this time, the DOGE price reached the last all-time high at USD 0.73. Since then, the DOGE course has been in a downward trend.


Elon Musk's tweets and comments have seemingly kept influencing the crypto market . There are even some studies on how and if the Tesla CEO's tweets affected the price of Bitcoin and Dogecoin. Elon Musk, who referred to himself as “ DoGFather ”, has been campaigning for Dogecoin since late 2020 and says he could offer DOGE payments for Tesla and SpaceX . In his opinion, “Dogecoin has potential as a currency”.


However, Elon Musk has repeatedly warned against risky crypto investments . In a video, the billionaire explained that one should be careful with crypto and not “bet house and yard on it”.



At the time of publication of the article, there is still no statement from Elon Musk, Tesla or SpaceX.


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