Dogecoin investor sues Elon Musk for allegedly running pyramid scheme
Keith Johnson, an American investor, has filed a lawsuit for allegedly backing a pyramid scheme involving the meme cryptocurrency Dogecoin. The plaintiff is sure that the coin itself has no value.
Keith Johnson, an investor in Dogecoin, accused Musk of racketeering for promoting Dogecoin. Johnson believes that altcoin trading is gambling. However, the defendants promoted it as a legitimate investment. The complaint is accusing SpaceX and Tesla of “a fraudulent scheme to artificially inflate the price” of Dogecoin. It is surprising that the meme coin, which is a joke response to the hype surrounding the crypto industry, is accused of being farcical. Johnson demands $258 billion in compensation.
Over the year, the value of Dogecoin has fallen by about 67%. Now the coin is worth $0.05. In May last year, Dogecoin peaked at over $0.7 but then began to decline. The altcoin was launched in 2013 as a joke. However, Elon Musk has shown interest in it. The entrepreneur said that Dogecoin could be used to buy Tesla products.