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Elon Musk Immediately Hit With Enormous $258 Billion Crypto Pyramid Scheme Lawsuit Over Dogecoin Amid A Devastating Bitcoin And Ethereum Value Crash


Jun 16, 2022

billionaire Elon Musk, who has the facility to create and destroy billions of {dollars} price of bitcoin and crypto worth with only a tweet, has helped the meme-based dogecoin develop into a prime ten cryptocurrency over the past 18 months—simply weeks in the past revealing one motive he thinks “folks love dogecoin.”

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Nevertheless, the dogecoin worth has crashed over the previous couple of months, shedding greater than 90% of its worth since hitting an all-time excessive in Could final yr and dropping together with the worth of bitcoin, ethereum and the broader crypto market.

Now, as bitcoin and ethereum teeter on the point of catastrophe, Musk and his corporations Tesla and SpaceX have been hit with a $258 billion lawsuit claiming they’re a part of a racketeering scheme to pump the dogecoin worth.

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“[Musk, Tesla and SpaceX] falsely and deceptively declare that dogecoin is a respectable funding when it has no worth in any respect,” Keith Johnson, described as “an American citizen who was defrauded out of cash by defendants’ dogecoin crypto pyramid scheme,” wrote in the grievance.

Johnson, who filed the lawsuit in New York, is searching for class-action standing for the go well with and goals to signify different allegedly harmed traders. He is asking for $86 billion in damages, together with triple damages of $172 billion, in addition to an order blocking Musk, Tesla and SpaceX from selling dogecoin.

is] merely a fraud whereby ‘higher fools’ are deceived into shopping for the coin at a better worth,” the lawsuit learn earlier than happening to listing Musk’s a number of tweets and public statements which have pushed up the dogecoin worth over the past 18 months.

Musk, who was voted “dogecoin CEO” in a joke Twitter ballot in 2019 and adopted the moniker “The Dogefather,” has been a fan of the tongue-in-cheek bitcoin rival for years, naming dogecoin as his favourite cryptocurrency.

Musk has beforehand mentioned he personally owns dogecoin, together with bitcoin and ethereum. In early 2021, Musk despatched the bitcoin worth sharply larger when it was revealed Tesla had purchased $1.5 billion price of bitcoin.

Final yr, as a bitcoin, ethereum and broad cryptocurrency bull run pushed costs to blistering highs, Musk repeatedly known as on dogecoin builders to improve the cryptocurrency as a way to “beat bitcoin arms down.”

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The dogecoin worth peaked forward of Musk’s hotly-anticipated look on the comedy sketch present Saturday Night time Stay and has since misplaced 93% of its worth.

Since then, Musk has rolled out Tesla and SpaceX help for dogecoin funds, permitting clients to purchase merchandise in dogecoin.

Tesla final yr briefly started accepting bitcoin for automobile purchases however Musk pulled the plug simply two months later, blaming bitcoin’s excessive vitality calls for and carbon footprint. Musk went onto say Tesla would most certainly restart accepting bitcoin although it hasn’t executed so but.

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