Dogecoin investor sues Elon Musk, Tesla and SpaceX for $258 billion – Meczyki.Net

The crypto sell-off of the past several weeks has wiped out hundreds of billions of dollars in paper profits and is leaving many crypto millionaires looking for something else.

A class action lawsuit was filed in federal court in Manhattan on Thursday by a US Dogecoin investor, accusing Elon Musk, Tesla and SpaceX of operating an illegal racketeering venture to inflate the price of the cryptocurrency. Musk frequently mentions the dog-themed cryptocurrency on his Twitter account, mentioning that the price of the token often goes up.

Plaintiffs in this lawsuit appear to be using those tweets and references to Musk himself as “dogfather” as evidence that Musk is controlling the cryptocurrency and is liable for damages among investors who have made money. The cryptocurrency has fallen from its highs in recent days from around $0.74 to a little over $0.05.

The complaint seeks to triple the $86 billion in damages that the plaintiffs allege have been lost by Dogecoin investors since Musk first began tweeting about it.

The plaintiff, Keith Johnson, said in the complaint, “The defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value.” “Since Defendant Musk and his corporations SpaceX and Tesla, Inc. began purchasing, developing, promoting, supporting and operating Dogecoin in 2019, Plaintiffs and Square have lost approximately $86 billion in this crypto pyramid scheme.”

We have reached out to Elon Musk for comment.

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