Lawsuit Filed Against Elon Musk, Spacex, Tesla Over Dogecoin

Elon Musk, Tesla, and Spacex have been taken to court for $258 billion over claims that they “are engaged in a crypto Ponzi scheme by way of Dogecoin cryptocurrency.” Musk and his companies allegedly “falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”

On Thursday Bloomberg reported that a class-action lawsuit was filed by Dogecoin investor Keith Johnson against Elon Musk and his businesses, Tesla and Spacex, in federal court in Manhattan.

The complaint states:

“Defendants Elon Musk, Spacex, and Tesla Inc. are engaged in a crypto pyramid scheme (aka Ponzi scheme) by way of dogecoin cryptocurrency.

Furthermore, the plaintiff says that DOGE is “simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”

According to the court document, Johnson is an American citizen who said he was “defrauded out of money by defendants’ dogecoin crypto pyramid scheme.” He claimed that Musk, Tesla, and Spacex constitute an illegal racketeering enterprise to inflate dogecoin’s price.

The court documents read that Johnson was “defrauded out of money by defendants’ Dogecoin crypto pyramid scheme,” claiming that Musk, Tesla, and Spacex tried to illegally spike Dogecoin’s price

The complaint details:

“Defendants falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.

Since defendant Musk and his corporations Spacex and Tesla Inc. began purchasing, developing, promoting, supporting, and operating dogecoin in 2019, [the] plaintiff and the class have lost approximately $86 billion in this crypto pyramid scheme.”

The Tesla CEO has open about his support of Dogecoin on Twitter. The self-proclaimed ‘Dogefather’ has referred to the meme coin as the people’s crypto and several times DOGE surged following Elon Musk’s public involvements.

While Tesla already accepts DOGE for payments of certain merchandise, Musk recently said that Spacex will also be supporting the meme cryptocurrency for merchandise and Starlink subscriptions.