Follow us for updates
© 2022 reportr.world
Read the Story →

Elon Musk is Sued for $258 Billion Over Dogecoin Support

It was originally a meme coin.
by Agence France Presse
Just now
Photo/s: Shutterstock
Shares

An investor in dogecoin, originally created as a joke but whose value increased and fell as it was promoted by Elon Musk, filed a $258 billion lawsuit Thursday against the billionaire and his companies Tesla and SpaceX.

Keith Johnson, who says he lost money after investing in dogecoin, described himself as an "American citizen who was defrauded" by what he called a "Dogecoin Crypto Pyramid Scheme."

He is asking for his motion, filed in a New York court, to be classified as a class action suit on behalf of those who have suffered losses by investing in dogecoin since 2019.

READ: How Elon Musk's Jokes Made Dogecoin a Cryptocurrency Star

Since Musk began promoting the virtual currency, investors have lost around $86 billion, Johnson estimates. He would like Musk to reimburse investors this sum, plus pay double that in damages -- an additional $172 billion.

Founded in 2013, dogecoin's creators say it was intended as an ironic response to two big internet phenomena: cryptocurrencies such as bitcoin, and a meme image of a Shiba Inu dog.

Continue reading below ↓

The price of dogecoin traded at just fractions of a cent for most of its existence.

But it saw its value leap at the beginning of 2021, rising to $0.73 in May of that year, amid a buying frenzy that surrounded the GameStop saga and after humorous messages about it from Musk.

On Thursday, however, it was worth less than six cents.

Johnson said he believes Musk increased "the price, market cap and trading volume of Dogecoin" through his promotion of it.

He included tweets from Musk, the world's richest man who has more than 98 million followers on Twitter, including one promising that SpaceX would "put a literal Dogecoin on the literal moon."

Johnson named Musk's Tesla electric carmaker in the suit since it accepts dogecoin as payment for certain derivative products. SpaceX was also included for having named one of its satellites after dogecoin.

Johnson likened dogecoin to a pyramid scheme since the virtual currency has no intrinsic value nor is it a product. Additionally, it is not backed by a tangible asset and the number of "coins" is unlimited.

Continue reading below ↓
Recommended Videos

Suits by investors who feel cheated by the promises of virtual currency are on the rise in the United States.

MORE ON CRYPTOCURRENCY:

Is Axie Infinity Still Worth Your Money in 2022?

PayMaya Launches Crypto Feature, Here's Your Guide

How Do Cybercriminals Steal Cryptocurrency?

Reportr is now on Quento. Download the app or visit the Quento website for more articles and videos from Reportr and your favorite websites.

Latest Headlines
Read Next
Recent News
With the reopening of several local destinations, this app has never been more timely.
He will serve as chief presidential legal counsel.
First new music in six years drops in end July.
It needs to manage up to $10 billion in debt.
The news. So what? Subscribe to the newsletter that explains what the news means for you.
The email address you entered is invalid.
Thank you for signing up to On Three, reportr's weekly newsletter delivered to your mailbox three times a week. Only the latest, most useful and most insightful reads.
By signing up to reportr.world newsletter, you agree to our Terms of Service and Privacy Policy.