Elon Musk Sued For $258B, Accused Of Dogecoin Pyramid Scheme

CALIFORNIA — Tesla and SpaceX mogul Elon Musk was sued for $258 billion Thursday by an investor who claimed he was fueling a pyramid scheme to bolster the cryptocurrency, Dogecoin.

A complaint was filed in New York City this week, pitting plaintiff Keith Johnson against Musk, Tesla, which recently moved to Austin, Texas, and SpaceX, which is headquartered in Hawthorne, Calif.

Johnson accused Musk and his companies of racketeering for Dogecoin to increase its value and price to later let it crumble.

The suit claims that Musk, the CEO of both companies, engaged in a Crypto Ponzi scheme to build the illusion of the unregulated currency.

"Dogecoin is not a currency, stock or security. It's not backed by gold, other precious metal, or anything at all," according to the complaint. "you can't eat it, grow it, or wear it. Dogecoin does not generate cash flow...It's simply a fraud whereby 'greater fools' are deceived into the buying the coin at a higher price."

Since Musk and his companies began purchasing and "promoting" the cryptocurrency, Johnson and the class have lost around $86 billion, which he intends to recover in damages. The number represents the decline in Dogecoin's market value since May 2021. Johnson wants it tripled.

"Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement," according to the complaint.

Johnson also seeks to block Musk, SpaceX and Tesla from promoting Dogecoin any further.

In February of last year, Tesla reportedly bought $1.5 billion in bitcoin and temporarily accepted the currency as payment for its vehicles, Reuters reported.