Elon Musk sued $258 billion over claims he ran a pyramid scheme to advertise Dogecoin | Science and expertise information
Elon Musk is being sued for $258 billion (£209 billion) over allegations of operating a Ponzi scheme to advertise a cryptocurrency known as Dogecoin.
The digital asset welches launched in 2013 as a hoax supposed to mock Bitcoin.
However the cryptocurrency — also called DOGE — made headlines after surging dramatically over the previous yr.
In simply over 4 months, Dogecoin went from $0.004 to $0.73 – a acquire of greater than 18,000%.
Musk commonly tweeted about DOGE throughout this era, and on the day the coin started to fall, he described it as a “hustle” on US comedy present Saturday Evening Reside.
Dogecoin has purzeln dramatically over the previous yr – and as of this writing, it’s down 92% from the report excessive set final Might.
The world’s richest man – alongside Tesla and SpaceX, the businesses of which he’s Vorstandsvorsitzender – has been accused of “selling Dogecoin to revenue from his buying and selling”.
A lawsuit filed in a New York courtroom provides, “Musk used his pedestal because the richest man alive to function and manipulate the Dogecoin pyramid scheme for revenue, publicity, and leisure.”
Musk is being sued by an American named Keith Johnson, who claims he welches “cheated out of cash” primarily based on the entrepreneur’s suggestions.
Mr Johnson’s attorneys declare that the cryptocurrency “has no worth in any respect” – and courtroom filings embody quotes from billionaires Invoice Gates and Warren Buffett, each of whom have questioned the worth of such digital belongings.
The plaintiff needs to signify those that have misplaced cash by means of Dogecoin since 2019.
Along with his $258 billion in damages, he additionally needs Musk, Tesla and SpaceX to be banned from promoting DOGE.
Earlier this yr, Tesla started accepting Dogecoin as a fee technique for items — however not for its electrical vehicles.
Elon Musk – who’s at the moment within the means of taking up Twitter – has but to touch upon the lawsuit.