Elon Musk and his companies have been sued for $258bn by an investor who claims he was “defrauded” by a Dogecoin “pyramid scheme.”
The investor, Keith Johnson, has named Musk, as well as his companies Tesla and SpaceX, in the lawsuit filed in federal court in Lower Manhattan on Thursday.
Plaintiff Keith Johnson who purchased Dogecoin in 2021 – is seeking a class-action lawsuit in the Southern District of New York against Musk and his companies SpaceX and Tesla, for at least $86 billion in damages.
Johnson made the demands at a federal court over claims that Musk directly “manipulated” the price of Dogecoin in a deliberate “crypto pyramid scheme” conducted over Twitter.
Johnson argues Musk drove up the price of Dogecoin with his tweets about it, but that the currency lacks “underlying value” and Musk promoted it for his own “profit, exposure, and amusement.”
Johnson is also seeking court orders to prohibit Musk from promoting Dogecoin, and to declare Dogecoin trading a form of gambling, under federal and New York law.
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