Elon Musk and Dogecoin fraudulent speculation

Elon Musk and his companies Tesla and SpaceX are being sued for $258 billion over an alleged pyramid scheme involving Dogecoin. 

Elon Musk’s Tesla and SpaceX and Ponzi scheme allegations on Dogecoin

According to Bloomberg, it appears that Elon Musk and his companies Tesla and SpaceX are being sued for $258 billion on charges of supporting a pyramid scheme involving Dogecoin. 

Unleashing the accusation is Keith Johnson, defined:

“An American citizen who said he was defrauded out of money by defendants’ Dogecoin Crypto Pyramid Scheme”.

Basically, Johnson claims that Musk and his companies set up an illegal enterprise to inflate the price of the memecoin par excellence: Dogecoin (DOGE).

Specifically, Johnson wants to represent a class of people who have lost money by trading Dogecoin since April 2019. 

His claim is the following: 

• $86 billion in damages;
• triple compensation of $172 billion;
• an order blocking Musk and companies from promoting Dogecoin and declaring that trading Dogecoin constitutes gambling under the laws of the United States and New York.

The $258 billion lawsuit against Elon Musk

In the complaint filed Thursday in Manhattan federal court, plaintiff Johnson stated the following:

“Defendants falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all”.

He then continues:

“Since defendant Musk and his corporations Spacex and Tesla Inc. began purchasing, developing, promoting, supporting, and operating dogecoin in 2019, [the] plaintiff and the class have lost approximately $86 billion in this crypto pyramid scheme”.

DOGE proposed as legal tender in California

Meanwhile, while Musk’s favourite memecoin has become grounds for being sued, US Senate candidate for California, Timothy Ursich, has proposed making Dogecoin a legal tender in his state. 

Of course, in his tweet, there was no shortage of support for his campaign, asking Dogecoin CEO Billy Markus and Elon Musk himself. 

Not only that, Ursich also pointed out in another tweet that adopting the currency in the sunshine state could be a useful tool to combat galloping inflation in the US. 

DOGE is today trading at $0.56, after a price dump of -28% over the past 7 days. This bearish market trend is also painting Bitcoin red, which at the time of writing has reached $20,000.