An investor in Dogecoin, initially created as a joke but later boosted and then reduced in value due to Elon Musk’s promotions, has filed a $258 billion lawsuit against the billionaire and his firms Tesla and SpaceX.
Investor Sues Elon Musk and Seeks Class-Action Status
Keith Johnson, a Dogecoin investor who claims he suffered losses, is pursuing a $258 billion lawsuit in a New York court. He alleges that Dogecoin, which started as a joke, operated as a “Dogecoin Crypto Pyramid Scheme” and defrauded him. Johnson seeks class-action status for fellow investors who have incurred losses in Dogecoin since 2019.
Demand for Reimbursement and Damages
Johnson is demanding that Elon Musk reimburse investors approximately $86 billion, the estimated losses incurred since Musk’s promotion of Dogecoin began. In addition, he is seeking double that amount, totaling $172 billion, in damages.
Dogecoin’s Origins and Volatile Journey
Dogecoin, created in 2013 as a satirical response to cryptocurrencies like Bitcoin and an internet meme featuring a Shiba Inu dog, remained of little value for most of its existence. However, it experienced a surge in early 2021, reaching $0.73 in May amid heightened interest fueled by the GameStop saga and Elon Musk’s humorous tweets about it.
Recent Decline in Dogecoin’s Value
On Thursday, the value of Dogecoin had fallen to less than six cents, marking a significant decrease from its peak. Johnson attributes the increase and subsequent decline in Dogecoin’s value to Musk’s promotional efforts.
Inclusion of Tesla and SpaceX in Lawsuit
Johnson’s lawsuit also targets Musk’s Tesla electric car company, which accepts Dogecoin as payment for certain derivative products. SpaceX is named due to its satellite being named after Dogecoin. Johnson likens Dogecoin to a pyramid scheme due to its lack of intrinsic value, absence of tangible backing, and an unlimited supply of coins.
Increasing Lawsuits in the Crypto Space
Lawsuits by investors who feel deceived by virtual currencies are becoming more common in the United States.
Summary
Keith Johnson is suing Elon Musk and his companies over alleged Dogecoin-related losses, seeking class-action status and substantial reimbursement and damages. This lawsuit highlights the growing trend of legal actions in the cryptocurrency space.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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