Tesla and SpaceX CEO Elon Musk has been sued for $258 billion for allegedly creating a “pyramid scheme” to support the cryptocurrency Dogecoin.
A $258 billion lawsuit has been filed for allegedly creating a pyramid scheme to support Dogecoin, despite knowing it’s not worth Elon Musk. Dogecoin saw its historical peak with $ 0.73 on May 8, with Musk’s frequent tweets. Those who bought this money from the summit experienced a loss of 91.7% as of today.
Shock lawsuit of $258 billion
Elon Musk, CEO of Tesla and SpaceX, is accused of manipulating Dogecoin with his tweets. A businessman investing in Dogecoin in the USA filed a $258 billion lawsuit against Elon Musk, claiming that he was defrauded with a “pyramid scheme”.
The world’s richest person, known for his open support of crypto money markets, Elon Musk, was accused of fraud, and the sensational statements he made from time to time played a large part. So much so that there are many investors in the market that are claimed to belong to Elon Musk.
The apple of the eye of these investors is undoubtedly Dogecoin. Because, Elon Musk announced in May that Tesla and SpaceX products can be purchased with Dogecoin, causing the price of Dogecoin to increase by 15 percent within 2 minutes. However, Dogecoin fell within minutes after the instant rise.
In a complaint filed with the Southern District Court of New York, plaintiff Keith Johnson accused Musk and their companies Tesla and SpaceX of being part of an illegal blackmail attempt to raise the price of Dogecoin.
“The defendants falsely and deceptively claim that Dogecoin is a legitimate investment, even though it has no value,” Johnson wrote in his complaint.
Claiming that he was defrauded with the “Dogecoin Crypto Pyramid Scheme”, Johnson sought $86 billion and $172 billion in damages for damages.
Demanding that a decision be taken to prevent Musk and his companies from promoting Dogecoin, Johnson also wanted it to be declared that Dogecoin trading constitutes gambling according to US and New York laws.
The pyramid scheme or pyramid sales system is known as a fraud method in which an asset or money is introduced, in which the participant is included in the system and is promised to earn assets or money on the condition that he finds other participants. This method is also known by the name of “the chain of happiness” among the people.
Is Elon Musk manipulating dogecoin?
Elon Musk definitely knows the power of dogecoin and its community. He even said that he was considering using it alongside bitcoin. However, there is no way right now to prove that Elon Musk is using his influence on Twitter to manipulate dogecoin. All we have is a very interesting coincidence.
This article analyzes pics posted by Elon Musk on Twitter relating to dogecoin and a brief capsulization of the history of Dogecoin. The primary points that we present in this article are the following:
Elon Musk is not simply a member of the Dogecoin community, but is affiliated with a group that has previously been accused of attempting to manipulate the market value of dogecoin; and
Elon Musk’s connection with this group shows that he is guilty of manipulating dogecoin.
To be fair, we can’t be certain that Elon Musk hasn’t invested some of his own money into dogecoin. Nor do we know for sure if he’s donating to the causes on his own. But it is strange that he’s been so vocal about the charities he supports on social media, then has to be pushed to give more than a token donation once his involvement gets attention. In short, the man has helped out charities plenty in the past, but he doesn’t seem to like showing people how. So perhaps there’s something fishy going on here after all…
It’s tough to say, but it certainly seems possible. The fact that Elon has been a regular tweeter of doge-related items may have sparked interest in the cryptocurrency early on, which led to its rapid price increase. Then again, I’ve never met a true capitalist who likes to see crypto prices increase—so it’s entirely possible that Musk is just in it for the ride and doesn’t care if the coin skyrockets in price or not.
So why is Musk so interested in dogecoin? It could be that he’s simply reminded of the importance of human kinship with his fellow man, or maybe just likes the shiba dog breed. It could also be that he’s found the revolutionary potential behind proof-of-work currencies. Either way, we can only expect to learn more about Musk’s affinity for dogecoin down the road, so keep an eye out for his next tweet.
Elon’s recent announcement adds a bit of legitimacy to cryptocurrencies, but it’s still hard to gauge whether or not his tweet had any sort of impact. We think it’s likely. If Elon Musk tweets about something, the internet tends to take notice. In some ways, that is scary; in others it can have a positive effect on the development of new technologies. Time will tell whether or not cryptocurrency will continue its growth, but we suspect that even if it doesn’t Elon Musk is likely to pop up in the news again soon. After all, he has yet to perfect his plan for colonizing Mars.