The investor accuses Elon Musk of manipulating the price of the dogecoin and asks him for 258 billion dollars

To the moon! Or rather in the cellar. An investor who lost money betting on dogecoin, a cryptocurrency originally inflated especially by Elon Musk’s interest, filed a lawsuit Thursday claiming $ 258 billion from the multibillionaire and his companies Tesla and SpaceX.

Keith Johnson describes himself as an “American citizen who was defrauded by a dogecoin pyramid scheme set up by the defendants”. He is demanding that his complaint, filed with a New York court, be classified as a class action on behalf of investors who have suffered losses by betting on dogecoin since 2019.

Since Elon Musk began promoting the virtual currency that year, people who have invested money in it have lost about $ 86 billion, he estimates. He asks for the reimbursement of this sum and double the damages, or 172 billion.

Divided by 10 from “Saturday Night Live”

Created in 2013, dogecoin was an ironic response to two Internet phenomena of the year: cryptocurrencies, which multiplied in the wake of bitcoin, and montages of a photo of a Shiba Inu dog that was very popular on the Internet.

Dogecoin’s price has dropped below one cent for most of its history. But driven by a certain buying frenzy around unlikely values ​​in early 2021 and Elon Musk’s multiple messages of praise on Twitter, dogecoin surged to over 70 cents in May 2021. Before starting to back off shortly after the airing of a satirical program in which Elon Musk called in a sketch a Live Saturday night the “scam” virtual currency.

It was trading below 6 cents on Thursday, as the cryptocurrency market underwent a huge correction, driven by the drop in bitcoin.

Keith Johnson believes Elon Musk “inflated the price, capitalization and trading volumes” of the cryptocurrency by advertising it. He transcribed in his complaint the many tweets broadcast about the richest man in the world, who has more than 98 million subscribers, one of which promises to bring “literally a dogecoin to the moon”.

A pyramid scheme, according to the actor

It also includes two entrepreneur-led companies: electric vehicle maker Tesla for accepting dogecoin as payment for some derivatives, and space company SpaceX for naming one of its satellites after dogecoin.

Keith Johnson compares the dogecoin to a pyramid scheme, in that, according to the complaint, the virtual currency has no intrinsic value, produces nothing, is not backed by any tangible goods and the number of “coins” in circulation is unlimited. Complaints from investors who feel misled by the promises of virtual currencies are currently on the rise in the United States with no guarantee of their outcome.

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