Elon Musk was sued for 258 billion dollars on Thursday by a Dogecoin investor who accused him of running a pyramid scheme to support the cryptocurrency.
A lawsuit has been brought against Elon Musk, Tesla and SpaceX for participating in the promotion of Dogecoin, which the accuser claims is a pyramid scheme.
According to Bloomberg, the class action lawsuit is brought to them by Keith Johnson, an American citizen who claims to have been “defrauded out of money by [Musk’s] Crypto Pyramid Scheme.” Johnson seeks a grand total of $258 billion in damages. The case was filed today in the Southern District of New York.
A lawyer for Johnson did not immediately respond to requests for comment on what specific evidence his client has or expects to have that proves Dogecoin is worthless and the defendants ran a pyramid scheme.
Elon Musk became the richest man in the world in 2021; his net worth is currently estimated at $202 billion. The eccentric entrepreneur’s tweets were a major driver behind Dogecoin’s meteoric rise last year. The coin reached its all-time high around the time Musk dedicated an entire sketch to it on Saturday Night Live.
Johnson aims to represent a class of market participants having lost money on the infamous cryptocurrency. He is asking for $86 billion in damages in addition to treble damages of $172 billion. Moreover, he wishes for Dogecoin trading to be declared gambling under New York law, and for Musk and his companies to be forbidden from promoting the coin ever again.