Dogecoin investor Keith Johnson filed a $258 billion class action lawsuit against Ilon Musk in federal court in Manhattan. The plaintiff accuses Musk and his company of promoting a “cryptocurrency pyramid scheme”.
According to the source, the plaintiff represents a group of investors who invested in the cryptocurrency Dogecoin , since April 2019 and lost their money.
“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment, while the asset has no value,” the lawsuit says . Musk’s tweets are said to be “false and misleading, and the price of DOGE was artificially inflated through a fraudulent scheme.
Johnson is claiming $86 billion in damages, and the joint damage for the group of investors that Johnson represents was estimated at $173 billion. As noted in the lawsuit, this is a “reasonable estimate of investor losses” from DOGE trading since 2019.
The сlaimant asks to prohibit Musk and companies from promoting Dogecoin and says that trading this cryptocurrency is not much different from gambling.
Elon Musk previously actively promoted the cryptocurrency meme, which was originally created as a joke. With tens of millions of followers on Twitter, Musk actively mentioned DOGE on social networks: in December 2020, after Musk mentioned the cryptocurrency in Twitter, it immediately added 20% in value, in February the same thing happened when Musk said he bought some Doge for his young son.
In January, Tesla launched a merch for DOGE. Earlier, in March 2021, Musk announced that Tesla Motors would accept payments for goods in meme cryptocurrency , but that event never materialized .
In March 2022 in the same Twitter it was announced that SpaceX will accept Dogecoin as payment for the company’s goods.
In April 2022, Elon Musk proposed to reduce the cost of a Twitter Blue subscription and allow users to pay for the premium service in DOGE.
In May Elon Musk criticized Twitter’s anti-spam script, saying it was poorly written.
Dogecoin creator Shibetoshi Nakamoto on Twitter on Thursday ridiculed the fact of such a trial, agreeing, however, that trading cryptocurrency is akin to gambling.
The price of Dogecoin has fallen to the level of $0.057 per coin for the last year, its peak growth was observed in May of last year, when it cost $0.64. Trading volume was $672,859,771 in 24 hours .
The market capitalization of the coin is $7,660,870,520.According to CoinMarketCap, the currency is in 10th place in the ranking of cryptocurrencies.
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