A lawsuit claims $ 258 billion in Elon Musk's support for the dogecoin

An investor, who lost money by betting on dogecoin, a parody cryptocurrency inflated in particular by the interest of Elon Musk, has filed a complaint claiming $ 258 billion from the billionaire. Tesla and SpaceX are also affected by the complaint.

The plaintiff describes himself as an “American citizen who was swindled by a pyramid fraud around the dogecoin mounted by the defendants.” He is requesting that his lawsuit, filed Thursday in a New York court, be classified as a class action lawsuit on behalf of investors who have incurred losses by betting on the dogecoin since 2019.

Since Elon Musk started promoting the virtual currency that year, people who have invested money in it have lost about $ 86 billion (83 billion francs), he estimates. He is claiming reimbursement of that amount and double the damages, or $ 172 billion.

Also read: What will be left of the cryptos crash?

An ironic cryptocurrency

Created in 2013, the dogecoin was an ironic answer to the two Internet phenomena of the year: cryptocurrencies, which multiplied in the wake of bitcoin, and montages of a Shiba Inu dog photograph widely used on the Internet.

The price of the dogecoin has risen to less than a cent for the majority of its history. But fueled by some shopping frenzy around unlikely values ​​in early 2021 as well as Elon Musk’s multiple Twitter posts, the dogecoin soared to more than 70 cents in May 2021.

He then began to retreat shortly after the airing of a satirical show, in which Elon Musk described the virtual currency as a “scam” in a sketch. It was less than 6 cents on Thursday.

The complainant includes in his application two companies run by the contractor: the electric vehicle manufacturer Tesla for accepting dogecoin as a means of payment for certain derivative products, and the space company SpaceX for naming one of its satellites according to the dogecoin.

Keith Johnson equates dogecoin with pyramid fraud, in that, according to the complaint, the virtual currency has no intrinsic value, produces nothing, is not based on any tangible assets, and the number of “coins” in circulation is unlimited.

Also read: The fall of the stablecoin Terra is the business of Sygnum Bank

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