Elon Musk and his companies SpaceX and Tesla Inc, were sued for $258 billion for being part of an alleged dogecoin (DOGE) cryptocurrency pyramid scheme.
Keith Johnson, a U.S. citizen, sued Musk alleging that his companies constitute a racketeering organization to inflate the price of Dogecoin, Fortune reported.
“Defendants falsely and misleadingly claim that Dogecoin is a legitimate investment when it is worthless,” Johnson said in his complaint, filed Thursday in a Manhattan federal court in the United States.
Damages recovery
With this lawsuit Keith Johnson wants to represent hundreds of people who have lost money trading dogecoin since April 2019.
In total, he seeks $86 billion in reinstatement damages; additionally, treble damages of $172 billion.
Johnson wants the Manhattan federal court to issue an order preventing Elon Musk and his companies from promoting dogecoin.
According to the plaintiff, DOGE trading constitutes gambling under U.S. and New York law.
Elon Musk has not taken a position
The American billionaire has not yet responded to the emails he received regarding the lawsuit.
Similarly, representatives of SpaceX and Tesla, as well as Tesla’s legal counsel, have also not provided any response on this case.
The case (22-cv-05037) of Keith Johnson v. Elon Musk is in the U.S. District Court, Southern District of New York (Manhattan).
According to CoinMarketCap the price of dogecoin stands at $0.05 this Thursday, June 16.
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