After the depreciation of 93% in 14 months of the dogecoin cryptocurrency (DOGE), Elon Musk and his companies Tesla and SpaceX were sued for having encouraged their purchase. The lawsuit was filed in federal court in Manhattan, New York, by a US citizen named Keith Johnson, as reported by Bloomberg.
The plaintiff points out that was defrauded by “the dogecoin pyramid scheme” promoted by Elon Musk, Tesla and SpaceX. He identifies them as an illegal extortion organization for inflating the price of said cryptocurrency.
“Defendants (Elon Musk, Tesla, and SpaceX) falsely and misleadingly claim that dogecoin is a legitimate investment when it is worthless,” the plaintiff said. Such a situation caused many people to invest in cryptocurrency and lose their money.
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From CriptoNoticias, we have reported different occasions in which the price of dogecoin achieved a strong rise after the mention of the billionaire on Twitter or other media. Some analysts have called this phenomenon the “Elon Musk effect,” though some of his price comments have lost power lately.
USD 258 billion is what the plaintiff is asking for
Through your request, Keith Johnson asks billionaire Elon Musk and his companies for USD 86 billion in damages caused and USD 172 billion for treble damages.
With this, it seeks to represent those people who lost their money investing in the cryptocurrency since April 2019. In addition, it requests an order that would block them from further promoting dogecoin.
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So far, the famous defendant has not made a public response on this situation. In the event that the court determines that Elon Musk, Tesla and SpaceX are guilty, they must pay a total of USD 258 billion, between both sums of money requested by the affected party.