A Dogecoin investor has sued Elon Musk for $258 billion. The Tesla CEO has been accused of running a pyramid scheme to support the cryptocurrency.
Plaintiff Keith Johnson in his complaint filed in the Federal Court in Manhattan accused Musk and his companies Tesla Inc and Space X of racketeering and promoting Dogecoin and letting the price up only to see it tumble down.
The complaint said that despite being aware of the depleting value of the OG crypto meme coin since 2019, Musk had used his position of being the richest man in the world to manipulate the Dogecoin pyramid scheme and use it for profit and amusement.
The complaint also consisted of comments from Warren Buffet, Bill Gates, and others questioning the value of the cryptocurrency. Most of them have been against the crypto market let alone the meme crypto.
Additionally, Johnson is seeking $86 billion in damages representing the decline in Dogecoin’s market value since May 2021. He would like Musk to reimburse this sum, plus pay double that in damages-an additional $172 billion.
Dogecoin to go under the gambling category?
Johnson named Musk’s Tesla Electric carmaker in the suit because it accepts the cryptocurrency as payment for many of its products. Space X was also included after naming one of its products after the crypto meme coin.
He also wants Musk and his companies to get blocked from promoting the cryptocurrency and urged the Judges to announce that trading Dogecoin is gambling under Federal and New York law.
The complaint also said that Dogecoin’s sell-off began during the time when Musk had been hosting the show Saturday Night Live and playing a fictitious financial expert on a “weekend update” segment called the crypto “a hustle.”
At press time, the meme crypto was trading at $0.05 down from its May 2021 peak.