Elon Musk, Tesla and SpaceX face a lawsuit for promoting Dogecoin

Elon Musk, Tesla and SpaceX are sued for $ 258 billion. The plaintiffs claim that “they engage in a crypto pyramid scheme (aka the Ponzi scheme) through the cryptocurrency Dogecoin. The lawsuit further states that Musk and his companies "falsely and deceptively claim that Dogecoin is a legitimate investment, even though it has no value at all".

You might be interested in: 7 favorite ways to buy a Bitcoin card in 2022

Lawsuit against Elon Musk, SpaceX and Tesla over Dogecoin

Dogecoin investor Keith Johnson filed a class action lawsuit against Elon Musk and his Tesla and SpaceX companies in federal court in Manhattan on Thursday, the Bloomberg agency reported.

Defendants Elon Musk, Spacex and Tesla Inc. they are involved in the crypto pyramid scheme (aka the Ponzi scheme) through the cryptocurrency dogecoin.

The plaintiff claimed that DOGE was "simply a scam that tricks 'bigger fools' into buying a coin at a higher price. He bumped into a crazy fool. According to this theory, overvalued assets will rise in price when there are "stupid" investors willing to pay more for them. So when these investors run out, the prices of these assets fall and many of them remain overpriced assets that no one else wants to buy.

According to a court document, Johnson is an American citizen who said he was "cheated for money by a crypto pyramid game with the Dogecoins." He claimed that Musk, Tesla and Spacex were involved in an illegal scheme to increase the price of Dogecoin.

Defendants falsely and deceptively claim that Dogecoin is a legitimate investment, if it has no value at all.

"Since the defendant Musk and his corporations SpaceX and Tesla Inc. began buying, promoting and supporting Dogecoin in 2019, the plaintiff and class lost approximately $ 86 billion in this crypto pyramid scheme, ”the court document details.

Johnson is trying to represent a class of cryptoinvestors who have lost money trading DOGE since April 2019.

He is seeking a total of $ 258 billion in damages. In addition, he asks for an order to prevent Musk, SpaceX and Tesla from promoting Dogecoin. Among other things, he claims that DOGE trading is a gamble under US and New York law.

Tesla's CEO is known for his weakness for Dogecoin. He said the meme cryptocurrency has potential as a currency and called it cryptocurrency for humans.

In May, he said SpaceX would soon accept DOGE as merchandise and a Starlink subscription could follow. Tesla already meme coiny accepts some goods. Musk also discussed allowing payments in DOGE for some Twitter services if he becomes the owner of a social media platform.

Do not miss: The best stockbrokers (brokers) in Europe and the best broker in the Czech Republic in 2022

Interesting events for our readers

Binance

Trade with up to 60% off fees and a $600 bonus

Open an account Review

Phemex

Free bonus up to $ 2,500 upon registration and deposit

Open an account Review

Bybit

Free bonus up to 3650 USD after registration and deposit

Open an account Review

All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.