Elon Musk will face a $258bn lawsuit from an investor of the Dogecoin cryptocurrency for defrauding him through a ‘crypto pyramid scheme’.
According to CyberNews, Keith Johnson claims that Musk drove up the price of Dogecoin through promotional tweets and other social media for his ‘profit, exposure and amusement’.
The lawsuit – which includes Musk’s companies Tesla and SpaceX – also accuses Dogecoin of being ‘simply a fraud’ since it has no underlying value as well as stating that Musk’s support for this cryptocurrency was deceptive.
Johnson claims that Musk gathered the ‘Doge Army’ to increase the cryptocurrency’s trade value while being fully aware of his influence on the market cap. He added that Musk’s description of the Dogecoin blockchain technology was confusing, leading the plaintiff to believe that its value will rise while it has no value at all.
The lawsuit states, “Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it… It’s simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”
Johnson is seeking $86bn in damages tripled for related financial losses incurred since 2019 and for Elon Musk and his businesses to be banned from advertising Dogecoin. He also wishes for a judge to declare trading Dogecoin gambling.
Earlier this year, Ccntent firewall provider Accellion came to a settlement of $8.1m to bring to an end a lawsuit over a data breach that involved FTA, its legacy file sharing service.
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