The plaintiff intends to stand for people who lost their funds investing in Dogecoin. The accusation described Elon Musk and his entities, Tesla and SpaceX, as a non-legal organization that operates by inflating its price.
After the depreciation of 93% during 14 months of the dogecoin, Elon Musk, and his companies, Tesla and SpaceX received accusations of encouraging the acquisition of the currency. The complaint got filed in federal court in Manhattan, New York, by a US citizen named Keith Johnson, as highlighted by Bloomberg.
The plaintiff expressed that he got deceived by the dogecoin pyramid scheme encouraged by Elon Musk, Tesla, and SpaceX. He identifies them as an organization that carries out illegal extortions to inflate the price of the said digital asset.
According to the plaintiff, the defendants falsely claim that Dogecoin is a legal investment when it is worthless. This situation made many investors trust their funds in the digital asset and lose money.
The price of Dogecoin achieved a solid position after the billionaire took on Twitter or other media to mention the asset. Some experts have called this situation the Elon Musk effect, though some of his price comments do not have the same power anymore.
The Plaintiff Asks for USD 258 Billion
Through his lawsuit, Keith Johnson requested billionaire Elon Musk and his companies a sum registered at USD 86 billion in damages caused and USD 172 billion for treble damages.
Keith intends to become an example for those people who lost their money investing in digital assets since April 2019. In addition, it requests an order to suspend them from further encouraging Dogecoin.
The famous defendant remains silent on this situation. If the court determines that Elon Musk, Tesla, and SpaceX are guilty, they must give at least USD 258 billion between the two sums of money asked by the affected party.
Dogecoin became the first “meme coin,” founded as a joke in 2013 by Jackson Palmer and Billy Marcus to make fun of the high marketing behind altcoins (non-mainstream cryptocurrencies known to fluctuate wildly in value) invading the digital space.
The joke coin soon raised the interest of billionaire Elon Musk, who started tweeting ironically about the asset. Over 2020 and the first months of 2021, Musk’s joking tweets about Dogecoin regularly sent its price to reach high positions in the charts.
By: Jenson Nuñez
