Has there been a pyramid fraud around dogecoin? In any case, this is the opinion of Keith Johnson, an American citizen who had invested in this cryptocurrency in 2019. The latter has just filed a complaint in a New York court against Elon Musk, Tesla, and SpaceX. He claims a total of 258 billion dollars. The man wants this request to be filed as a class action, so that other aggrieved investors can join him.
Crypto lawsuits on the rise
In detail, he believes that Elon Musk’s statements on Twitter and the decisions taken in his companies caused the surge and then the fall in the price of dogecoin. Thus, $86 billion has reportedly been lost since the billionaire started speaking out on crypto. The plaintiff claims this sum as well as the doubling of this sum in damages: 172 billion dollars.
The facts accelerated in 2021, when Elon Musk posted many positive messages about dogecoin on Twitter. While the price had stagnated around one cent since its creation in 2013, it literally exploded to reach 70 cents in May. The plaintiff claims that the value then fell after the Tesla boss appeared on a satirical show where he explained that dogecoin is a “ scam “.
Interestingly, Keith Johnson includes two companies owned by Elon Musk in his lawsuit: Tesla and SpaceX. The first is notably cited because it accepted dogecoin to pay for derivatives. The second because it decided to baptize one of its satellites in homage to the electronic currency, while Elon Musk wants to finance a launch project thanks to dogecoins.
The future will tell us whether or not justice will give reason to the plaintiff. These lawsuits are in any case part of a very tense climate in the cryptocurrency sector. As currency values have fallen significantly in recent months, many investors are deciding to go to court to get their money back.