Businessman Elon Musk and the companies SpaceX and Tesla are sued for alleged pyramid scheme with the cryptocurrency Dogecoin, according to the American press
American Keith Johnson has asked for $258 billion in damages after he lost a lot of money with the currency.
In the complaint filed in a Manhattan court in New York on Tuesday (14), Johnson alleges that he "is an American citizen who has
been defrauded of money" and that the defendants "deceptively claim that Dogecoin is a legitimate investment when it has no value whatsoever."
"Defendants were aware since 2019 that Dogecoin had no value, but still promoted it to profit from its trading.
Musk used his pedestal as the richest man in the world to operate and manipulate the Dogecoin pyramid scheme for profit, exposure, and fun," the complaint states.
Johnson is asking for $86 billion in damages, representing the decline in Dogecoin's market value
since May 2021, and wants it tripled. He also asks for a ban on advertising of Dogecoin by Musk and his companies.
Dogecoin started as a joke and eventually became the 7th largest asset of its kind in market value in August last year, according to the website Coinmarketcap.
In 2021, Dogecoin gained new prominence at the hands of Elon Musk. The Tesla founder's Twitter posts were mainly responsible for the jump in value that the "crypto-meme" had that year.