Elon Musk Sued For $258 Bn Over Dogecoin Support

NNN: An investor in dogecoin, originally created as a joke but whose value rose and fell as Elon Musk promoted it, filed a $258 billion lawsuit on Thursday against the billionaire and his companies Tesla and SpaceX.

Keith Johnson, who says he lost money after investing in dogecoin, described himself as a “US citizen who got scammed” by what he called a “Dogecoin crypto pyramid scheme.”

He requests that his motion, filed in a New York court, be classified as a class action lawsuit on behalf of those who have suffered losses by investing in dogecoin since 2019.

Since Musk started promoting the virtual currency, investors have lost about $86 billion, Johnson estimates. He would like Musk to reimburse investors for this sum, in addition to paying double in damages: an additional $172 billion.

Founded in 2013, the creators of dogecoin say it was intended as a tongue-in-cheek response to two big internet phenomena: cryptocurrencies like bitcoin and an image of a Shiba Inu dog meme.

The dogecoin price was traded in fractions of a penny for most of its existence.

But it saw its value jump in early 2021, rising to $0.73 in May of that year, amid a buying frenzy surrounding the GameStop saga and humorous messages about it from Musk.

On Thursday, however, it was worth less than six cents.

Johnson said he believes Musk increased “Dogecoin’s price, market capitalization, and trading volume” through his promotion.

It included tweets from Musk, the world’s richest man who has more than 98 million Twitter followers, including one promising that SpaceX would “put a literal Dogecoin on a literal moon.”

Johnson named Musk’s electric car maker Tesla in the lawsuit as it accepts dogecoin as payment for certain derivative products. SpaceX was also included for naming one of its satellites after dogecoin.

Johnson compared dogecoin to a pyramid scheme since the virtual currency has no intrinsic value and is not a product. Also, it is not backed by a tangible…

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