Crypto News: Elon Musk Hit With $258b Dogecoin Lawsuit See Why

Crypto News – Billionaire Elon Musk, as well as his firms SpaceX and Tesla Inc, are being sued for $258 billion in damages for “engaging in a crypto pyramid scheme” involving Dogecoin (DOGE).

iexclusivenews reports that the damages requested are roughly three times Dogecoin’s current market cap of $7.5 billion and more than 34 times its ATH market cap of $88.68 billion in mid-2021.

The class-action lawsuit, filed in New York District Court on Thursday by an attorney from Evan Spencer Law, claims that Musk;

“used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure, and amusement.”

Plaintiff Keith Johnson, a US citizen, argues in the petition that Musk and his organizations were “unjustly enriched” by $86 billion as a consequence of wire fraud, gambling enterprises, false advertising, misleading activities, and other illegal conduct.

Johnson says that he and other class members lost about $86 billion between May 2021 and June 2022 and is seeking that amount in monetary damages, as well as an additional $172 billion in damages and expenses.

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What You Should Know

iexclusivenews reports that defendant Musk is the self-proclaimed ‘Dogefather,’ a ‘former CEO of Dogecoin,’ a partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin, who assembled the ‘Doge Army,’ comprised of his corporations and various billionaires, influencers, and celebrities, to increase the price, market cap, and trading volume of Dogecoin.”

Musk said in January that his electric vehicle firm Telsa will take Dogecoin as payment for its items. In May, he revealed that his space exploration company SpaceX will take Dogecoin payments.

The lawsuit also seeks an order deeming Dogecoin trading to be gambling under New York and federal law, and argues that Musk and his firms have broken state and federal gambling regulations.

“Since Plaintiff and the class were not advised that the trading of Dogecoin was nothing more than a gambling enterprise, Plaintiff and the class demand the return of all wagers lost trading Dogecoin.”

It also aims to prohibit Musk and his companies, as well as any other unlicensed professionals, from further advertising, marketing, or promotion of Dogecoin.

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What The Community Is Saying

iexclusivenews Nigeria reports that the crypto community has ridiculed the lawsuit.

Dogecoin creator Shibetoshi Nakamoto, a Tweet of whose was cited in the lawsuit as supporting evidence, called the lawsuit “stupid as fuck” on Twitter on Thursday, but admitted that crypto trading isn’t much different from gambling.

Rahul Sood, CEO, and co-founder of Irreverent Labs, which builds blockchain games called it a “stupid class-action lawsuit” 

“Amazing that in the US someone could launch such a stupid class-action lawsuit. These guys all knew what they were getting into. Ridiculous.”

 

Ron Coleman, a commercial litigator and partner at Dhillon Law Group with 196,000 Twitter followers replied to a Tweet about the news, noting that “anyone can say anything in a lawsuit.”