Dogecoin Investor Sues Musk, Tesla (TSLA), and SpaceX for $258B

A lawsuit, filed Thursday by Keith Johnson, accuses Musk and his companies, Tesla (NASDAQ: TSLA) and SpaceX, of committing fraud, as well as violating federal and state racketeering and gambling laws, and seeks class-action status on behalf of dogecoin investors who have lost money since April 2019.

Johnson is a dogecoin investor accusing Musk and his two companies of operating a “pyramid scheme” to inflate the price of the cryptocurrency. The lawsuit seeks $86 billion in damages, which is the amount he claims dogecoin investors have lost since Musk started purchasing and promoting it in 2019, plus triple damages of $172 billion for a total of $258 billion.

“Defendants falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all,” the lawsuit says. “Dogecoin is not a currency, stock or security. … It is not based upon or tied to anything of value. … It’s simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”

By Michael Elkins

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