Breaking: Musk Faces Lawsuit Over Alleged Dogecoin Fraud

It is already well established that any positive activity around Elon Musk and Tesla often boosts Dogecoin’s price almost instantly. In a latest development, a U.S. citizen is charging Musk with alleged involvement in Dogecoin related fraud in a Musk Dogecoin lawsuit.

According to a Bloomberg report, Musk, along with SpaceX and Tesla were sued for $258 billion over Doge-related claims. The case filing suggests allegations that they are part of a “racketeering scheme to back Dogecoin.

‘Dogecoin Is Deceptive’

The report mentions Keith Johnson as an American citizen who is behind the lawsuit. Johnson was allegedly “defrauded out of money by defendants’ Dogecoin Crypto Pyramid Scheme.” He claimed that they constitute an illegal racketeering enterprise to inflate Dogecoin’s price.

In his complaint filed on Thursday in federal court in Manhattan, he said,

“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.”

Demand To Block Musk From Promoting Dogecoin

In the complaint, Johnson sought to represent all those who lost money trading in Dogecoin since April 2019. Demanding $86 billion in damages and triple damages of $172 billion, he also demands action against Musk.

He wants the court to issue an order preventing the Tesla CEO from promoting the world’s largest memecoin. Johnson also wants Dogecoin trading to be declared as constituting gambling under the state and federal law in the Musk Dogecoin lawsuit.

Recently, Musk announced Tesla merchandise could be purchased using Dogecoin, taking the token’s price upwards. It was also announced that Dogecoin could also be used to purchase SpaceX merchandise too soon.

The billionaire himself is a DOGE holder and often openly supports the token in his tweets. The tweets, almost always, attract positive price action for Dogecoin. Musk’s interest in purchasing social media platform Twitter had also sparked interest in Dogecoin purchasing.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Anvesh Reddy

Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.