Elon Musk Sued $258 Billion Over Dogecoin Crypto Pyramid Scheme

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Elon Musk Sued $258 Billion Over Dogecoin Crypto Pyramid Scheme
17 Jun 2022
6 min read

News Synopsis

Keith Johnson, who says he lost money after investing in Dogecoin, described himself as an "American citizen who was defrauded" in what he called the "Dogecoin Cryptographic Pyramid Scheme." He wants his allegations filed in New York court to be classified as a class action proceeding on behalf of those who have lost their investment in Dogecoin since 2019.

Johnson estimates that investors have lost about $86 billion since Musk began promoting cryptocurrencies. He wants Musk to repay the amount to investors and double the number of damages an additional $172 billion.

The Dogecoin maker, founded in 2013, says it was intended as a joke-like reaction to two major Internet phenomena, cryptocurrencies like Bitcoin and meme images of the Shiba Inu.

But it soared in value at the beginning of 2021, rising to $0.73 in May of this year, in the enthusiastic spending surrounding the GameStop story, and after a humorous message from Musk.

Johnson has nominated Tesla, an electric car maker of Musk, in a proceeding to accept Dogecoin as payment for certain derivatives. SpaceX was also included to name one of the satellites after Dogecoin.

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