The priority of this case is set on Dogecoin, a cryptocurrency based on an online joke that Elon Musk nurtured, evidently humorously.
Reports suggest that Elon Musk and his firms SpaceX and Tesla Inc. are being sued for presumed involvement in a “racketeering scheme” meant to defraud investors who had funded the cryptocurrency Dogecoin.
$258 Billion Dogecoin lawsuit
This morning Keith Johnson filed the lawsuit in the US District Court for the Southern District of New York (Manhattan). According to an anonymous source, Johnson is an American citizen who was tricked by the defendants’ Dogecoin Crypto Pyramid Scheme.
By filing this lawsuit Johnson is simply looking to represent a class of people who have lost money trading in Dogecoin since April 2019. He is asking for $258 billion in damages. This is more than double the whole fortune of SpaceX in late May. According to reports, he is also pursuing an injunction restricting Musk and the corporations from selling Dogecoin and a declaration that the Dogecoin trade includes gambling under the US and New York law.
Dogecoin is a 2013-launched cryptocurrency that began as a joke. It is based on the Shiba Inu internet meme, but its self-deprecating tone resounded with many in the cryptocurrency community, and over time it attained significant impetus, gaining a legion of followers comprehended as the “Dogecoin Army.”
The currency’s worth was additionally backed by Elon Musk’s humorous Twitter support for the coin. In a February 2021 tweet, he referred to the coin as the people’s cryptocurrency.
Musk also mentioned Dogecoin on his debut as host of Saturday Night Live in 2021. There he gave some crypto enthusiasts optimism that the coin’s value would continue to soar. Those aspirations were confounded when the coin’s value began a rambling slide that continues to this day. Musk’s pronouncements that Tesla and SpaceX will initiate taking Dogecoin induced temporary boosts in the coin’s value.
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It is still fuzzy whether or not the case will move forward, as more details are yet to surface, but it may illustrate the rising frustration among some crypto investors who have lost funds to the unregulated market as a result of celebrity pronouncements and endorsement.
However, Dogecoin is not the only cryptocurrency that has lately been reduced. The market as a whole has seen a significant fall, resulting in dismissals at crypto trading companies such as Coinbase.
Musk is not foreign to litigation. In May, for example, he was sued by a Twitter investor who claimed that his acquisition of the firm disregarded California law.
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