According to reports on Thursday, Elon Musk and two of his firms, Tesla and SpaceX, are facing a $258 billion lawsuit.
An American resident is suing the world’s richest man for reportedly pumping Dogecoin, according to Bloomberg. Musk is accused of being a part of a racketeering operation to back the cryptocurrency, according to the complaint.
“Defendants fraudulently and deceptively claim that Dogecoin is a genuine investment when it has no value at all,” according to the complaint filed by Keith Johnson. Johnson is attempting to get the case certified as a class action to assist other allegedly damaged investors.
Elon Musk Is Still Supporting Dogecoin
Dogecoin was created in 2013 as a joke and as a mockery of Bitcoin. During 2020 and 2021, however, it moved from being an unknown “meme currency” to possibly one of the most talked-about cryptocurrencies in the market. This is primarily due to Tesla CEO Elon Musk’s usage of Twitter to publish memes about it, inflating its price. With a market valuation of $7.5 billion, it is currently the 11th most valuable digital asset. That value reached as high as $88 billion at one time, much exceeding the market capitalization of several S& P 500 corporations.
Johnson, though, wants to represent consumers who have lost money trading the asset, according to Bloomberg. He is seeking $86 billion in damages, as well as $172 billion in treble damages. According to Bloomberg, Johnson is also seeking an injunction prohibiting Musk and his firms from promoting Dogecoin, as well as a ruling that Dogecoin trade is illegal under US and New York law.
Despite being founded on a canine joke, Dogecoin may have some applications: Musk recently stated that SpaceX and Tesla will soon accept the cryptocurrency as payment. Developers have been collaborating with Musk to make it a Bitcoin competitor.
Other well-known figures have expressed interest in DOGE, including Mark Cuban, the owner of the Dallas Mavericks, who has stated that he feels Dogecoin has potential as a payment system.