Crypto Pyramid Scandal Rocks Elon Musk, Sued For $258bn For Promoting Dogecoin

A Crypto Pyramid Scandal is presently rocking Elon Musk and his companies as the world’s richest man has being dragged to court for allegedly ‘promoting Dogecoin’ which the plaintiff refers to as ‘illegal racketeering and a pyramid scheme.’

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.

Elon Musk, Company Sued For $258bn Crypto Pyramid Scandal

A disgruntled investor is ambitiously suing the world’s richest man for more money than he has.

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.

The suit concerns Musk and his two flagship companies, SpaceX and Tesla. Johnson claims they were part of an illegal racketeering scheme that aimed to inflate Dogecoin’s price. “Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all,” Johnson said in the complaint.

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.

Despite loudly advocating for the coin, neither Musk nor his companies are known to have had any involvement in its development. Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer; it was the first “meme coin” ever released, meaning that it purposefully had no use case and was advertised as such. Dogecoin is currently trading at around $0.05, a 92% drop from its all-time high of 73 cents.

Key Takeaways

  • An American citizen by the name of Keith Johnson is seeking $258 billion in damages from Elon Musk for promoting Dogecoin.
  • Johnson claims Musk, Tesla and SpaceX were part of a “Crypto Pyramid Scheme” and were partaking in illegal racketeering.
  • Dogecoin is currently 92% down from its all time high.

Elon Musk and two of his companies, Tesla and SpaceX, are facing a $258 billion lawsuit, according to Thursday reports.

Bloomberg today reported that an American citizen is suing the world’s richest man for allegedly pumping Dogecoin. The lawsuit alleges that Musk was part of a racketeering scheme to back the cryptocurrency.

“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all,” Keith Johnson, who filed the lawsuit, said in the complaint. Johnson is seeking class-action status for the suit and aims to represent other allegedly harmed investors.

Dogecoin was originally designed in 2013 as a joke and to poke fun at Bitcoin. But it went from being an obscure “meme coin” to arguably the most talked about digital asset in the space during 2020 and 2021.

This is mainly because Tesla CEO Musk would post memes about it on Twitter and, in turn, pump its price. It’s now the 11th biggest digital asset, with a market cap of $7.5 billion. At one point, that figure was as high as $88 billion—bigger than the market cap of many companies on the S&P 500.

But according to Bloomberg’s report, Johnson wants to represent people who lost money trading the asset. He is asking for $86 billion in damages, along with triple damages of $172 billion.

Johnson is also asking for an order blocking Musk and his companies from promoting Dogecoin—and that Dogecoin trading constitutes gambling under U.S. and New York law, Bloomberg reported.

Dogecoin, despite being based on the meme of a dog, may have some uses: most recently, Musk said SpaceX and Tesla would soon accept the cryptocurrency for payment. And developers have been working with Musk on making it a Bitcoin rival.

Other big names are also all-in on DOGE—billionaire businessman Mark Cuban, who owns the Dallas Mavericks, has said that he believes Dogecoin has value as a payment system.

Frequently Asked Questions (FAQs) On Crypto Pyramid Scandal, Elon Musk And Promotion Of Dogecoin

1. Is Dogecoin a good investment?

According to crypto analysts, Dogecoin does not make a good crypto investment. This is based on Dogecoin’s performance over the past 12 months. Dogecoin has been plunging, and the worst thing is that nothing is holding Dogecoin from plunging further. This is because Dogecoin is a meme coin and has no use cases.

2. Is Dogecoin expected to reach $1?

DOGE price prediction summary

Dogecoin is thought to reach $0.380 by the end of 2025 and $0.55 in five years’ time. Meanwhile, PricePrediction.net suggests it will surpass the $1 mark in 2028 and reach a maximum price of $1.18 that year. By 2030, an optimistic average price of $2.11 is projected.

3. Where will Dogecoin be in 5 years?

The future price increase of Dogecoin is predicted around $0.55 around 2026, according to our long-term Dogecoin price prediction. The maximum price estimated in next 5 years is $0.58. These predictions take several variables into account, such as volume changes, price changes, market cycles, and similar currencies.

4. Will Dogecoin go up?

Some predictions suggest Dogecoin will reach $2 by 2030. However, it may take some time for the current market to recover. And there is a need for caution over the coming months. Dogecoin is currently trading around $0.08 after starting 2022 at $0.17.

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About the Author: Femi Adeoya

Mr Femi Adeoya is a Chartered Forensic Accountant and a Certified Fraud Examiner. He has over 20 years professional work experience in accounting, finance and business management processes. As an Accounting Software Expert, he has implemented and supervised accounting solution set up of over 50 small and medium businesses in Nigeria. As a passionate blogger, Mr Adeoya is an ardent writer and communicationist. He is the CEO of QUICK LOAN ARENA (quickloanarena.com), the number 1 loan apps review website in Nigeria. He is very passionate about the quick and instant loan industry in Nigeria and has written over 200 reviews on different loan apps and digital banks in Nigeria, USA, Canada and UK.

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