Elon Musk Facing $258 Billion Lawsuit For Promoting Dogecoin

Alex Dovbnya

Elon Musk has been hit by a huge lawsuit over his Dogecoin promotion

Centibillionaire Elon Musk has been smitten with a $258 billion class-action lawsuit over his Dogecoin promotion, which was filed in Manhattan federal court earlier today.

Keith Johnson, the plaintiff, claims that he wants to represent the people burned by the meme cryptocurrency.

Musk, the self-proclaimed “Dogefather, as well as Tesla and SpaceX have been accused of participating in “a crypto pyramid scheme”. Johnson claims that Dogecoin is simply a fraud designed for bigger fools.

The prosecution cited a tweet posted by Dogecoin co-founder Jackson Palmer to back his case. As reported by U.Today, Palmer, an outspoken critic of cryptocurrencies, believed the industry was perpetuating a “cult-like” scheme.

Johnson alleges that Musk falsely stated that Dogecoin is money while encouraging his public to buy the cryptocurrency.

Defendants and their employees allegedly misled the plaintiff and the class into considering the Bitcoin parody a viable asset.

The lawsuit demands that the centillionaire and his company stop promoting the meme cryptocurrency.

The plaintiff alleges that the defendants were “unjustly enriched” with approximately $86 billion using their deceptive practices. The class is also seeking damages of a staggering $172 billion.

Dogecoin took advantage of frequent Musk tweets and experienced a massive bull run in early 2021. However, the hype surrounding the original dog coin quickly dissipated.

The meme cryptocurrency is now down a whopping 92.12% from its all-time high of $0.73.

Musk’s net worth currently stands at $217 billion after dropping 19.6% ($53 billion) this year.

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