The Tesla exec is slammed with a lawsuit of $258 billion for the role he and his companies played in promoting Dogecoin.
A United States-based man has filed a $258 billion lawsuit against Elon Musk and his companies, Tesla and SpaceX, claiming that the tech mogul is part of an alleged pyramid scheme that promoted Dogecoin’s widespread adoption.
The plaintiff, Keith Johnson, noted that Musk is part of the reason why he invested in Dogecoin because the CEO and founder of Tesla and SpaceX portrayed the memecoin as a legitimate investment vehicle, whereas it “has no value at all.”
Johnson noted in the lawsuit filed in the Federal District Court of New York Manhattan that he intends to represent Dogecoin investors who have recorded major losses since April 2019 to date as a result of the memecoin.
Plaintiff Demands $258 Billion as Compensation
It is noteworthy that Johnson is seeking class action for the suit and he demands a compensation of $258 billion from the world’s richest man.
Per the report published today by Bloomberg, the plaintiff is requesting that Musk pay the sum of $86 billion in damages and another $172 billion in triple damages.
Furthermore, the plaintiff also demands that Musk should be restricted from promoting the popular memecoin in order to protect other people from the crypto project he believes had wreaked havoc on many investors.
At the time of writing this line, Musk is yet to respond to the lawsuit filed against him and his company.
Dogecoin’s Massive Rally and Collapse
Launched in 2013, Dogecoin was created as an internet joke popularly referred to as memecoin. Interestingly, the cryptocurrency gradually became popular after the tech mogul threw his weight behind the project, which caused the coin’s price to soar tremendously
Musk’s companies – Tesla and SpaceX – have already adopted the cryptocurrency as a payment method for their merchandise.
The world’s richest man has always been vocal about his love and support of Dogecoin as he believes that the coin will ultimately become the currency of the internet in the future.
DOGE Plunges 92% From ATH
Last year, DOGE soared as high as $0.73, before plunging tremendously. DOGE is currently a shadow of its all-time high as it has shredded a significant percentage of its value since the beginning of this year.
At press time, DOGE is changing hands at $0.05, down 92.1% from its previous ATH of $0.73.