Space X and Tesla CEO, Elon Musk is facing a $258 billion lawsuit for running a dogecoin pyramid scheme. According to Bloomberg, Keith Johnson, 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.
Keith seeks $86 billion in damages and an additional $172 billion for the losses incurred for trading dogecoin from 2019. Through the lawsuit, he says he also represents various other investors who have lost their money in dogecoin and he implores Elon Musk to halt promoting Dogecoin.
“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.
The Lawsuit also cites,
“Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it. It doesn’t pay interest or dividends. It has no unique utility compared to other cryptocurrencies. It’s not secured by a government or private entity.”
Elon Musk hasn’t yet responded to the lawsuit.
The Tesla CEO has begun accepting DOGE for Tesla merch and announced that SpaceX might soon follow the same.
The billionaire has made a point of highlighting his bitcoin investments in recent years. He declared in March that he won’t sell his bitcoin, Ethereum, and Dogecoin holdings despite rising inflation and economic instability that have led many investors to liquidate risky assets.