On Thursday, Elon Musk, SpaceX, and Tesla were sued for $258 billion by a Dogecoin investor who accused Musk and his companies of running a pyramid scheme to support the cryptocurrency.
In the complaint, plaintiff Keith Johnson claimed Musk, Tesla, and SpaceX had touted Dogecoin, driving its price up to only then allow the price to tumble.
“Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading,” the complaint said. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.”
Johnson is seeking $86 billion in damages and wants to block Musk, SpaceX, and Tesla from promoting the cryptocurrency. Johnson is also seeking for a judge to declare that Dogecoin trading constitutes gambling under federal and New York law.