Elon Musk was sued for $258 billion by a Dogecoin investor in an allegation accusing the Tesla CEO of running a pyramid scheme to support the cryptocurrency.
On Thursday, Plaintiff Keith Johnson, a Dogecoin investor, filed a complaint to federal court in Manhattan accusing Musk, Tesla Inc and SpaceX, in which Musk holds a position of CEO in both companies, of using his pedestal as the world’s richest man to operate and manipulate the Dogecoin pyramid scheme for profit, exposure and amusement, driving up the price and let it tumble.
“Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading,” Keith Johnson said and also aggregated comments from Warren Buffett, Bill Gates and others who questioned the real value of cryptocurrency.
Dogecoin was launched in 2013 as a joke and was designed to mock the world’s largest trading cryptocurrency Bitcoin.
The coin suddenly surged from $0.004 to $0.73 or around 18,000% in a little over four month in May 2021. During that period, Musk made several tweets regarding this coin. However, the value of this dogecoin has been on a downtrend since, plunging 92% from its high in May last year.