A Dogecoin investor filed a $258 billion lawsuit Thursday against the billionaire and his companies Tesla and SpaceX.
Describing himself as an “American citizen who was defrauded” by what he called a “Dogecoin Crypto Pyramid Scheme”, Keith Johnson said he lost money after investing in dogecoin.
In a lawsuit filed in a New York court, he is asking for his case to be classified as a class action suit on behalf of those who have lost money by investing in dogecoin since 2019.
According to Johnson, since Musk began promoting the virtual currency, investors around the globe have lost around $86 billion. This investor wants Musk to reimburse investors this amoun0ppppt, plus pay double that in damages — an additional $172 billion.
Dogecoin was created in 2013 in humor to two big internet phenomena: cryptocurrencies such as bitcoin, and a meme image of a Shiba Inu dog. For most of its existence, the price of dogecoin traded at just fractions of a cent.
At the start of 2021, Dogecoin rose to $0.73 in May of that year, amid a buying frenzy that surrounded the GameStop saga and after Musk shared humorous messages about it.
It was worth less than six cents on Thursday.
Johnson said he believes Musk increased “the price, market cap and trading volume of Dogecoin” through his promotion of it.
Musk, the world’s richest man who has more than 98 million followers on Twitter, commented that one promising that SpaceX would “put a literal Dogecoin on the literal moon.”
In the suit, Johnson named Musk’s Tesla electric carmaker since it accepts dogecoin as payment for certain derivative products. One of SpaceX satellites was also named after dogecoin.
Since Dogecoin has no intrinsic value nor is it a product, Johnson likened it to a pyramid scheme. it is also not backed by a tangible asset and the number of “coins” is unlimited.