Elon Musk and groups sued for $258bn over alleged Dogecoin ‘pyramid scheme’

Elon Musk and his businesses have been sued for $258bn by means of an investor who claims he turned into “defrauded” by means of a Dogecoin “pyramid scheme.”

The investor, Keith Johnson, has named the entrepreneur, as well as his groups Tesla and SpaceX, within the lawsuit filed in federal court docket in Lower Manhattan on Thursday.

Mr Johnson is demanding $86bn in damages further to tripled damages of $172bn for losses incurred from buying and selling the cryptocurrency considering 2019.

Dogecoin has appreciably been a favorite topic of the arena’s richest person, who has often discussed it on social media.

The charge of one dogecoin on Thursday become just under six cents, an extended manner off from its May 2021 excessive of 74 cents.

“Dogecoin isn't always a foreign money, stock, or safety. It’s now not sponsored via gold, other valuable metal, or something at all. You can’t eat it, grow it, or wear it,” the lawsuit states.

“It doesn’t pay hobby or dividend

It has no precise software compared to different cryptocurrencies…It’s not secured by a central authority or private entity

Mr Johnson wishes to represent different buyers who have lost cash in Dogecoin on the grounds that April 2019.

asserting that trading Dogecoin is playing underneath US and New York law.

Mr Musk, who has a non-public fortune of $217bn, stated in March that he might no longer promote bitcoin

Ethereum or Dogecoin, notwithstanding billions being wiped off their values in latest months.