Dogecoin Pyramid Scheme For Profit, Exposure and Amusement | Is This How Elon Musk Supports The Crypto Token?

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A Dogecoin investor sued Elon Musk for $258 billion on Thursday, alleging he ran a pyramid scheme to support the cryptocurrency.

Plaintiff Keith Johnson filed a complaint in federal court in Manhattan accusing Musk,  Tesla Inc., and SpaceX of racketeering for promoting Dogecoin and driving up its price, only to let it fall.

Musk is CEO of both Tesla and SpaceX.

“Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading”, the compaint said. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.”

The complaint also aggregates comments from Warrne Buffett, Bill Gates and other questioning the value of cryptocurrency.

Tesla, SpaceX and a lawyer for Musk did not immediately respond to requests for comment.

A lawyer for Johnson did not immediately respond to requests for comment on what specific evidence his client has or expects to have that proves Dogecoin is worthless and the defendants ran a pyramid scheme.

Johnson is seeking $86 billion in damages, representing the decline in Dogecoin’s market value since May 2021, and wants it tripled.

He also wants to block Musk and his companies from promoting Dogecoin and a judge to declare that trading Dogecoin is gambling under federal and New York law.

The complaint said Dogecoin’s selloff began around the time Musk hosted the NBC show ” Saturday Night Live and, playing a ficitious financial expert on a “Weekend Update” segment, called Dogecoin “a hustle”.

Tesla in February 2021 said it had bought $1.5 billion of bitcoin and for a short time accepted it as payment for vehicles.

Dogecoin traded at about 5.8 cents on Thursday, down from its May 2021 peak of 74 cents.

The case is Johnson v. Musk et al, US District Court, Southern District of New York, No. 22-05037.

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