Elon Musk and his companies were accused of running Dogecoin crypto pyramid scheme
A US citizen has sued the entrepreneur, Tesla, and SpaceX for $258 billion
17.06.2022 - 07:20
503
2 min
0
What’s new? US citizen Keith Johnson has sued Elon Musk, as well as the companies he leads, Tesla and SpaceX, claiming that they implemented illegal financial schemes to manipulate the rate of the meme cryptocurrency Dogecoin (DOGE). Johnson is seeking $86 billion in damages from Musk and $172 billion in moral damages, Bloomberg reports. He has also asked the court for a complete ban on the promotion of DOGE for the billionaire and his companies.
What else is known about the charges? The plaintiff is also seeking recognition of Dogecoin trading as gambling under New York State and US law.
“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all,” the lawsuit says.
Musk and the lawyers of his companies have not yet commented on the incident in any way.
The entrepreneur has repeatedly advocated for Dogecoin, causing sharp fluctuations in the coin’s rate. In December 2021, he stated that DOGE is better for everyday payments than BTC. In May, Musk reported that SpaceX would begin accepting Dogecoin as payment for merch. In this, Tesla had already started accepting the meme cryptocurrency.
As of June 17, 07:15 UCT, Dogecoin is trading at $0,058, down in price by 3% in 24 hours, according to Binance.
Earlier, CryptoLaw chief and lawyer John Deaton warned Elon Musk about the possible consequences of the Dogecoin promotion. He suggested that the US Securities and Exchange Commission (SEC) may recognize the asset as security and link it to Tesla and SpaceX.
Economist and author Nassim Taleb said that the lack of clear rules regulating the digital assets market provides opportunities for civil lawsuits, which is a “gold mine for lawyers.”
Useful material?
Telegram 
Twitter Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024
Cryptocurrency rates
-
Bitcoin
$98 485
BTC
+0.88%
-
Ethereum
$3 335.62
ETH
+6.43%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.4
XRP
+24.57%
-
Dogecoin
$0.387424
DOGE
+1.23%
-
Cardano
$0.863596
ADA
+10.81%
-
Bitcoin Cash
$487.92
BCH
-5.59%
-
Polkadot
$6.06
DOT
+7.93%
-
Stellar XLM
$0.28459
XLM
+18.03%
-
Litecoin
$90.06
LTC
+0.66%