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Elon Musk sued for $258 billion over alleged Dogecoin

Billionaire Elon Musk and his companies face a lawsuit by a Dogecoin investor Keith Johnson who accused that Dogecoin is an illegal investment, Thursday in federal court in Manhattan.

The lawsuit states:

” Defendants Elon Musk, SpaceX, and Tesla Inc. are engaged in a crypto pyramid scheme (aka Ponzi scheme) by dogecoin cryptocurrency.”

“Defendants falsely and deceptive claim that Dogecoin is a legitimate investment when it has no value at all.” Keith Johnson, who filed the lawsuit, said in the complaint. (1)

Johnson said that he believes Musk has increased “the price, market cap and trading volume of Dogecoin.” through his promotion of it.

He seeks $86 billion in damages, plus $712 billion in triple damages, and an injunction barring Musk and the companies from marketing Doge and declaring that the Doge is illegal under US and New York law.

The complaints also aggregate comments from Warren Buffett, Bill Gates, and others questioning cryptocurrency’s value. (2)

Netizens are going crazy over Keith Johnson’s accusation

Musk or SpaceX, Tesla, and Tesla’s lawyer did not respond to press inquiries about the lawsuit right away. Doge is down 70% this year and is currently trading at $0.05818. It peaked at 74 cents last year before plummeting.

He also appealed for the federal judge to ban Musk and his companies from endorsing Dogecoin. He further Demanded Dogecoin trading be declared “gambling” under federal and New York law.  (3)