Keith Johnson, a Dogecoin investor, claims that he bought the cryptocurrency because Tesla CEO Elon Musk encouraged it. Mr. Johnson has now launched a lawsuit against Elon Musk for $258 billion.
Keith Johnson had claimed after losing all his money that “he was an American citizen defrauded by a Dogecoin Crypto Pyramid Scheme”. Mr. Johnson has now turned to court as he filed his case in New York Court against the billionaire and his companies Tesla and SpaceX. The case has been filed as a class-action lawsuit on behalf of those who have suffered losses as they had invested in Dogecoin since 2019.
According to Johnson, investors have lost about $86 billion since Musk began promoting the virtual currency. He wants Musk to refund investors for this amount, plus an additional $172 billion in damages. It was reported that the Dogecoin cryptocurrency had been originally formed as a joke. Or rather for ironic purposes. But due to the latest hype of the currency by Tesla Owner has led to an increase in investors of the currency.
Dogecoin had never been a cryptocurrency that was valued more than a cent for many years. But since the year 2021, Dogecoin saw a rise to $0.73 in May. The increase was believed to have taken place after a series of messages being released by Musk just days before.
Johnson claims that Musk had increased, “the price, market cap, and trading volume of Dogecoin through the promotion of it”. Because Dogecoin has no intrinsic value and is not a product, Johnson compared it to a pyramid scam. It’s also not backed by anything actual, and the quantity of “coins” is limitless.
Further details on the matter are still awaited.