Crypto

Elon Musk Suddenly Hit With Huge $258 Billion Crypto Pyramid Scheme Lawsuit Over Dogecoin Amid Devastating Bitcoin and Ethereum Price Crash

Tesla
TSLA
Billionaire Elon Musk, who has the power to create and destroy billions of dollars worth of bitcoin and crypto with just a tweet, has helped the meme-based dogecoin become a top ten cryptocurrency in the last 18 years. months, just a few weeks ago, revealed a reason. he thinks “people love dogecoin”.

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However, the price of dogecoin has plummeted in recent months, losing more than 90% of its value since reaching an all-time high in May of last year and falling along with the price of bitcoin, ethereum and the broader crypto market.

Now, as Bitcoin and Ethereum teeter on the brink of disaster, Musk and his companies Tesla and SpaceX have been hit with a $258 billion lawsuit claiming they are part of an organized crime scheme to drive up the price of dogecoin.

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“[Musk, Tesla and SpaceX] falsely and misleadingly claim that dogecoin is a legitimate investment when it is worthless,” Keith Johnson, described as “a U.S. citizen who was defrauded of money by the defendants’ dogecoin crypto pyramid scheme,” wrote in the complaint.

Johnson, who filed the suit in New York, is seeking class action status for the suit and intends to represent other investors allegedly harmed. He is asking for $86 billion in damages, along with triple damages of $172 billion, as well as an order preventing Musk, Tesla, and SpaceX from promoting dogecoin.

“[Dogecoin
DOGE
is] simply a fraud whereby ‘big fools’ are tricked into buying the coin at a higher price,” the lawsuit reads before listing Musk’s multiple tweets and public statements that have pushed up the price of the coin. dogecoin in the last 18 months.

Musk, who was voted “CEO of dogecoin” in a joking Twitter poll in 2019 and adopted the moniker “The Dogefather,” has been a fan of bitcoin’s tongue-in-cheek rival for years, naming dogecoin his favorite cryptocurrency.

Musk has previously said that he personally owns dogecoin, along with bitcoin and ethereum. In early 2021, Musk sent the price of bitcoin considerably higher when it was revealed that Tesla had bought $1.5 billion worth of bitcoin.

Last year, when Bitcoin, Ethereum and a broad cryptocurrency bull run drove prices to dizzying levels, Musk repeatedly called on dogecoin developers to upgrade the cryptocurrency to “beat Bitcoin hands down.”

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The price of dogecoin peaked before Musk’s highly anticipated appearance on the comedy sketch show Saturday Night Live and has since lost 93% of its value.

Musk has since implemented Tesla and SpaceX support for dogecoin payments, allowing customers to purchase merchandise in dogecoin.

Last year, Tesla briefly began accepting bitcoin for car purchases, but Musk pulled the plug just two months later, blaming bitcoin’s high energy demands and carbon footprint. Musk went on to say that Tesla would likely restart bitcoin acceptance, though he hasn’t done so yet.

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