Elon Musk is being sued for $258 billion (£209 billion) for allegedly working a pyramid scheme to promote a cryptocurrency known as Dogecoin.
The digital asset was launched as a joke in 2013 and was designed to mock Bitcoin.
However the cryptocurrency – often known as DOGE – hit the headlines after an enormous spike final 12 months.
In a little bit over 4 months, Dogecoin went from $0.004 to $0.73 – a rise of over 18,000%.
Musk regularly tweeted about DOGE round this time, and on the day the coin began to drop in worth, he described it as a “hustle” on the American comedy present Saturday Evening Dwell.
Dogecoin has dropped considerably over the previous 12 months – and on the time of writing, it’s down 92% from the file excessive seen final Could.
The richest man on this planet – together with Tesla and SpaceX, corporations of which he’s CEO – is accused of “selling Dogecoin to revenue from his commerce”.
A criticism filed in a New York court docket provides: “Musk used his pedestal because the world’s richest man to function and manipulate the Dogecoin pyramid scheme for the good thing about america.” revenue, publicity and leisure.”
Musk is being sued by an American man named Keith Johnson, who alleges that he “scammed cash” on account of the businessman’s endorsement.
Mr. Johnson’s attorneys assert that cryptocurrencies “don’t have any worth in any respect” – and court docket filings comprise quotes from billionaires Invoice Gates and Warren Buffett, each of which query the worth of the belongings. such digital belongings.
Plaintiff desires to signify individuals who have misplaced cash by means of Dogecoin since 2019.
Along with his declare of $258 billion in damages, he additionally desires Musk, Tesla, and SpaceX to be banned from promoting DOGE.
Earlier this 12 months, Tesla began accepting Dogecoin as a technique of fee for its items – however not its electrical vehicles.
Elon Musk – who’s presently within the means of taking up Twitter – has but to touch upon the lawsuit.