Dogecoin investor sues Elon Musk, Tesla and SpaceX for $ 258 billion – TechCrunch

The cryptocurrency sell-off over the past few weeks has wiped out hundreds of billions of dollars in profits and left many crypto-millionaires who have been looking for something else to hold on to.

A class action lawsuit was filed Thursday in Manhattan federal court by a US Dogecoin investor accusing Elon Musk, Tesla and SpaceX of running an illegal racketeering venture to inflate the price of cryptocurrency. Musk often mentions the dog-themed cryptocurrency on his Twitter account, noting that it has often caused the token price to jump.

The plaintiff in this lawsuit appears to use these tweets and Musk’s own references to himself as “dodges” as evidence that Musk controlled the cryptocurrency and is liable for damages to investors who lost money as the cryptocurrency fell from the most its high value of almost $ 0.74 to just over $ 0.05 in recent days.

The lawsuit calls for a triple in the $ 86 billion in damages claimed by the plaintiff to have been lost to Dogecoin investors since Musk first tweeted.

“Defendants falsely and fraudulently claim that Dogecoin is a legitimate investment when it has no value,” said plaintiff Keith Johnson in the complaint. Because defendant Musk and his corporations SpaceX and Tesla, Inc. began buying, developing, promoting, maintaining and operating Dogecoin in 2019, the plaintiff and the class lost approximately $ 86 billion in this crypto pyramid scheme.

We contacted Elon Musk for comment.

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