Elon Musk gets hit with ‘ridiculous’ $258B Dogecoin lawsuit

Blockonomics
Elon Musk gets hit with ‘ridiculous’ $258B Dogecoin lawsuit
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Billionaire Elon Musk and his companies SpaceX and Tesla have all been sued for as much as $258 billion for “participating in a crypto pyramid scheme involving Dogecoin (DOGE).”

The damages sought are more than 34 times Dogecoin’s current market cap of $7.5 billion and nearly triple its mid-2021 all-time high (ATH) market cap of $88.68 billion.

An attorney for Evan Spencer Law filed a class-action lawsuit in New York District Court on Thursday, accusing Musk of “using his status as the world’s richest man to operate and manipulate a Dogecoin pyramid scheme for profit, exposure and entertainment.”

In the filing, U.S. citizen plaintiff Keith Johnson claimed that Musk and his company were “unjustly enriched” by $86 billion as a result of wire fraud, gambling businesses, false advertising, deceptive practices and other illegal practices.

Ledger

Johnson alleges that he and others in the class action lost roughly $86 billion between May 2021 and June 2022, and is seeking compensation for that figure and another $172 billion in damages and expenses:

“Defendant Musk is the self-proclaimed ‘Father of Doge,’ ‘Former CEO of Dogecoin’, partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin, He assembled an ‘dog army’ including his company and various billionaires, influencers and celebrities to boost Dogecoin’s price, market cap and trading volume.”

In January, Musk announced that his electric car company, Telsa, would accept DOGE as payment for company merchandise. In May, he announced that his space exploration company, SpaceX, would also accept payments in Dogecoin.

The lawsuit also seeks an order to declare that transactions in Dogecoin constitute gambling within New York and federal law, and claims that Musk and his company violated state and federal gambling laws.

“Because the plaintiffs and the class were not informed that the Dogecoin transaction was nothing more than a gambling enterprise, the plaintiffs and the class demand a refund of all bets lost on the transaction of Dogecoin.”

It also seeks to order Musk and his company, as well as any other unlicensed professionals, to advertise, market or promote Dogecoin in the future.

community response

The crypto community laughed at the lawsuit.

Related: Dogecoin’s Parents Are Fighting: Musk and Jackson Palmer Swap Barbs

Citing tweets by pseudonymous Dogecoin creator Shibetoshi Nakamoto as supporting evidence, the lawsuit called the lawsuit “stupid” on Twitter on Thursday, while acknowledging that crypto trading isn’t much different from gambling.

Rahul Sood, CEO and co-founder of Irreverent Labs, which develops blockchain games, calls it a “stupid class action lawsuit”

“It’s amazing how someone in the US can bring such a stupid class action lawsuit. These people know what they’re doing. Ridiculous.”

Ron Coleman, a commercial litigator and partner at Dhillon Law Group, who has 196,000 Twitter followers, responded to a tweet about the news, noting that “anyone can say anything”.

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