The sell-off of cryptocurrencies over the past few weeks has wiped out hundreds of billions of dollars in paper gains, leaving many people who were once crypto millionaires looking for something else to hold on to.
An American Dogecoin investor filed a class action lawsuit on Thursday in federal court in Manhattan. The lawsuit accuses Elon Musk, Tesla, and SpaceX of running an illegal racketeering business to drive up the price of the cryptocurrency. Musk has talked about the cryptocurrency with a dog theme a lot on his Twitter account. When he does, the price of the token often goes up.
The person who filed this lawsuit seems to be using those tweets and Musk’s own references to himself as the “Dogefather” as proof that Musk has been in charge of the cryptocurrency and should pay investors who lost money as the cryptocurrency fell from a high of nearly $0.74 to just over $0.05 in recent days.
The lawsuit asks for three times the $86 billion in damages that the plaintiff says Dogecoin investors have lost since Musk started tweeting about it.
“Defendants falsely and misleadingly claim that Dogecoin is a good investment when it has no value at all,” Keith Johnson, the person who filed the complaint, said. “Since Defendant Musk and his companies SpaceX and Tesla, Inc. started buying, developing, promoting, supporting, and running Dogecoin in 2019, Plaintiff and the class have lost about $86 billion in this crypto pyramid scheme.”
Elon Musk has been contacted for comment.
An investor in Dogecoin is suing Elon Musk, Tesla, and SpaceX for $258 billion.
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