Elon Musk is being sued for $258 billion for allegedly running a Dogecoin pyramid scheme
Many people who were formerly crypto millionaires are now seeking anything else to spend their money in after losing hundreds of billions of dollars in the recent cryptocurrency sell-off. On Thursday, a US investor in the cryptocurrency Dogecoin filed a class-action lawsuit against Elon Musk, Tesla, and SpaceX in the United States District Court for the District of Manhattan. The defendants are accused of illegally influencing the price of a cryptocurrency through racketeering actions. This is said to have happened in order to profit from the deception. When Elon Musk tweets about a cryptocurrency with a dog theme, the price of the coin nearly always rises as a direct result of the increased demand generated by the tweets. Because of Elon Musk’s tweets, more people are interested in bitcoin.
The plaintiffs, in this case, argue that Musk is liable for damages suffered by those who have lost money as a result of the cryptocurrency’s recent decline in value, which has varied from a high of around $0.74 to a low of just over $0.05 in recent days. This tweet, together with Musk’s reference to himself as the “Dogefather,” appears to be cited as proof in this lawsuit that Musk is in charge of cryptocurrency and is accountable for the losses suffered by investors as a result of his activities. The complaint appears to be arguing that because Musk has control over bitcoin, he should be held accountable for any investment losses. This appears to be one of the grounds made in the complaint.
According to sources, the value of dogecoin has dropped by an amount equivalent to 86 billion dollars in the time after Elon Musk’s initial statements about the cryptocurrency were made public. The complaint requests that the current amount of damages be increased to $86 billion, which is three times the current amount.
According to the complaint, “since the defendant Musk and his firms, SpaceX and Tesla, Inc. began purchasing, creating, promoting, supporting, and operating Dogecoin in 2019, the plaintiff and the class have lost over $86 billion in this Crypto Pyramid Scheme.” “Since the defendant Musk and his firms SpaceX and Tesla, Inc.” “The class as a whole has also lost close to 86 billion dollars in this crypto pyramid scheme,” the argument adds.
