Elon Musk has been hit with a massive lawsuit over his Dogecoin promotion

Elon Musk has been sued with a $258 billion class-action lawsuit over his Dogecoin promotion, filed in Manhattan federal court earlier today.

Elon Musk facing $258B lawsuit for promoting Dogecoin

Keith Johnson, the plaintiff, stated that he wanted to represent people burned by the crypto meme. Musk, the self-appointed “Dogefather, as well as Tesla and SpaceX have been accused of participating in “a crypto pyramid scheme”. Johnson claims that Dogecoin is just a scam designed for more idiots.

The plaintiff cited a tweet posted by Dogecoin co-founder Jackson Palmer to bolster his case. A major critic of cryptocurrencies suggested that the industry perpetuates a “cult-like” scheme.

Johnson claimed that Musk falsely claimed that Dogecoin was money while encouraging his audience to buy crypto. The defendants and their employees allegedly misled the plaintiff, and the class viewed the Bitcoin imitation as a viable asset.

The lawsuit asks the billionaire dollar and his company to stop promoting the cryptocurrency meme. Plaintiffs assert that the defendants “unjustly enriched” about $86 billion with the help of their fraudulent practices. The group is also seeking a whopping $172 billion in damages.

Benefiting from Musk’s frequent tweets, Dogecoin experienced a major bull run in early 2021. However, the hype surrounding the original coin quickly disappeared.

The crypto meme is now down a whopping 92.12% from its record high of $0.73. Musk’s net worth now stands at $217 billion after falling 19.6% ($53 billion) this year.

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