Elon Musk faces $ 258 billion class action lawsuit over Dogecoin

Elon Musk looks at the camera in a strange way during a fancy 2022 party.

Photo: Gotham (Getty pictures)

Infamous internet clown and terribly SNL host Elon Musk and his two big companies, Tesla and SpaceX, are facing a ridiculously large $ 258 billion lawsuit over … uh … Dogecoin. As I have said before, 2022 is just a wild year of headlines.

Bloomberg reported yesterday that Musk and his companies are being sued for allegations that they are part of a racketeering scheme involving the Dogecoin cryptocurrency. The potentially expensive lawsuit was filed by Keith Johnson, which claims that Musk, SpaceX and Tesla were all part of a large-scale pyramid scheme designed to control the price of Dogecoin while convincing people online that the cryptocurrency was a legitimate and prudent investment. Johnson filed the lawsuit June 16 in the Southern District Court of New York in Manhattan.

In the court documents, Johnson’s legal team says that Musk and his companies artificially and illegally increased the price of Dogecoin. In the documents, Johnson also claims that he was “scammed for money” by Musk “Dogecoin Crypto Pyramid Scheme”. (By the way, that was the name of my electro-pop-punk band in high school.)

As reported by Bloomberg, Johnson argues that Musk and his companies “erroneously and misleadingly” claimed that the cryptocurrency, named after an Internet joke and created in 2013, was a “legitimate investment.” But – and this is a real shock, so you might want to sit down – Johnson claims that Dogecoin actually has “no value at all.”

Read more: Game developers tell Elon Musk that he is wrong about what it takes to make something good

Johnson is demanding $ 86 billion in compensation. On top of that, he wants triple compensation of 172 billion dollars as well as a court order from the court that blocks Musk from promoting Dogecoin. On top of all this, he also states that under New York and US federal law, all trade in Dogecoin is in fact gambling and should be regulated as such. Add it all up and you’ll reach the astronomical figure of $ 258 billion. For a small context. Disney bought the entire Lucasfilm and Star Wars for $ 4 billion. And on Earlier this year, Mircosoft acquired Activision for $ 70 billion.

Kotaku has contacted Tesla and SpaceX about the lawsuit.

According to the lawsuit, Johnson is seeking the status of a class action lawsuit to represent other investors who also lost cash trading in Dogecoin since April 2019.

Musk has recently been in the news for his ongoing feud with a video game comedy website on Twitter. And the funniest part of that feud is how badly Musk loses. Speaking of Twitter, the billionaire 50-year-old is trying to buy social media for as much as $ 44 billion. He has that too a really awful Elden Ring build.