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.
- Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- ‘Trump Insider Whale’ Increases Bitcoin Short As U.S. Counters China in New Australia Deal
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- Ethereum’s Vitalik Buterin Responds to Allegations of Excessive Control By ETH Inner Circle
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal 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.
