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Elon Musk, SpaceX And Tesla Sued For $258 Billion In Alleged Dogecoin ‘Pyramid Scheme’

Topline

Elon Musk, SpaceX and Tesla were taken legal action against in federal court Thursday over claims that Musk straight “controlled” the cost of Dogecoin in an intentional “crypto pyramid plan” performed over Twitter.

KATWIJK, NETHERLANDS – JANUARY 29: In this image illustration graphes of digital … [+] cryptocurrencies, Dogecoin and Bitcoin, are shown on January 29, 2021 in Katwijk, Netherlands. (Photo by Yuriko Nakao/Getty Images)

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Key Facts

Plaintiff Keith Johnson– who acquired Dogecoin in 2021– is looking for a class-action suit in the Southern District of New York versus Musk and his business SpaceX and Tesla, for a minimum of $86 billion in damages.

Johnson argues Musk increased the rate of Dogecoin with his tweets about it, however that the currency does not have “hidden worth” and Musk promoted it for his own “earnings, direct exposure, and amusement.”

Johnson is likewise looking for court orders to forbid Musk from promoting Dogecoin, and to state Dogecoin trading a type of betting, under federal and New York law.

The fit declares Dogecoin is an “unlawful wire scams business” sustained by promo and control over Twitter.

SpaceX has actually not reacted to an ask for remark from Forbes.

Key Background

Dogecoin’s worth has actually been on the decrease over the previous year, dropping to $.057 per coin Thursday, from a peak of $.64 last May. The cryptocurrency released in 2013 at $.0002 per coin. Musk began promoting Dogecoin in 2019 with a series of tweets that consisted of “DOGE” and “Tesla merch buyable with Dogecoin,” both of which increased the Dogecoin’s worth. In Feb. 2021, Musk strolled back on his assistance, tweeting, “I will actually pay real $” to individuals who void their Dogecoin accounts.” The U.S. Securities and Exchange Commission introduced an examination that month into Musk for his tweets associated with Dogecoin. Musk then tweeted, “Doge will live permanently.” Musk has actually continued to support, or a minimum of reference, Dogecoin on Twitter, along with on a May, 2021 episode of Saturday Night Live

Crucial Quote

The fit states Dogecoin is a “scams where ‘higher fools’ are tricked into purchasing the coin at a greater cost.”

Further Reading

Elon Musk’s ‘SNL’ Gig Was A Bust For The Billionaire– And Dogecoin– But A Boom For NBC(Forbes)

An Introduction to Dogecoin, The Meme Cryptocurrency(Forbes)

Musk, Tesla, SpaceX Are Sued for Alleged Dogecoin Pyramid Scheme(Bloomberg)

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