Elon Musk Have To Face A Lawsuit Over Promotion Of Dogecoin
American Keith Johnson filed a class-action lawsuit against billionaire Elon Musk and his companies SpaceX and Tesla due to their active involvement in the promotion of Dogecoin (DOGE).
According to Bloomberg, the plaintiff alleges that Dogecoin has no value as an investment asset and accuses Musk and his two companies of promoting a “cryptocurrency pyramid scheme.”
Johnson will represent with his lawsuit a group of individuals who have lost money trading or investing in DOGE since April 2019.
The plaintiff is seeking a payment of $258 billion, of which $86 billion is the financial damage caused to Johnson and a group of investors in Dogecoin, and $172 billion is a triple settlement.
In addition to money, Keith Johnson is asking the court to ban Elon Musk and his two companies from promoting DOGE in the future.
The case will be heard in federal court in Manhattan.
Elon Musk is well known for his commitment to meme coin. Not so long ago, his automotive and clean energy company Tesla began accepting DOGE as payment for merch. A little later, Musk announced that the aerospace company SpaceX would also sell merch for Dogecoin.
In addition, Musk has posted on Twitter various pictures or photos with a Shiba Inu dog, which is a symbol of the famous meme coin.
After each of these statements or tweets, the coin reacted with a surge in price growth. But after the hype subsided, the DOGE rate also declined.