For being “engaged” in a crypto pyramid scheme involving Dogecoin, Elon Musk and his companies SpaceX, Tesla Inc, and other billionaires, the staggering $258 billion in damages is being sought.
The amount sought is more than 34x Dogecoin’s current market capital of $7.5 billion, and almost three times its ATH market capital of $88.68 Billion in mid-2021.
The class-action lawsuit was filed in New York District Court Thursday by Evan Spencer Law’s attorney. It alleges that Musk “used the position of World’s Richest man for the operation and manipulation of the Dogecoin Pyramid Scheme to profit, exposure and amusement.”
Plaintiff Keith Johnson, a U.S. citizen claims that Musk and his corporations were “unjustly rich” with $86 billion due to wire fraud, gambling enterprise and false advertising.
Johnson claims that Johnson and other class-action participants have lost $86 billion between May 2021 & June 2022. He is seeking that amount in monetary damages, along with $172 billion in fees and damages.
The self-proclaimed ‘Dogefather’, ‘former CEO’ of Dogecoin and partner, spokesperson, publicist and marketer of Dogecoin is Defendant Musk. He assembled the Doge Army’, which included his corporations as well as various billionaires, influencers and celebrities, to increase the price, trading volume and market cap of Dogecoin.
Musk announced in January that his electric vehicle company Telsa would accept Dogecoin for payment for its merchandise. Musk announced in May that SpaceX, his space exploration company, would accept Dogecoin payments.
The lawsuit demands that an order be made declaring Dogecoin trading to be gambling in New York and federal law. It also alleges Musk and his companies have broken state and federal gambling laws.
“Since Plaintiff, the class were not informed that trading Dogecoin was nothing but a gambling enterprise,” Plaintiff and The Class demand the return all bets placed trading Dogecoin.
It will also order Musk and his companies and any other unlicensed professionals in advertising, marketing or promoting Dogecoin in future.
Reactions from the community
The lawsuit was ridiculed by the crypto community.
Related: Dogecoin’s parents fight: Musk and Jackson Palmer swap barbs
Shibetoshi Nakamoto (the creator of Dogecoin), a tweet of which was cited as supporting evidence in the lawsuit on Thursday called the lawsuit “stupid and fuck” but acknowledged that crypto trading isn’t any different than gambling.
I mean, dogecoin is exactly the same as all other crypto. They want to make all crypto gambling. Although the lawsuit is clearly stupid, i don’t believe crypto trading is any different from gambling.
Shibetoshi Nakamoto, @BillyM2k, June 16, 2022
Rahul Sood (CEO and co-founder at Irreverent Labs), which develops blockchain games, called it a “stupid lawsuit”.
“It’s amazing that someone in the US could start such a stupid class action lawsuit. These men knew exactly what they were getting themselves into. Ridiculous.”
Ron Coleman, a commercial litigator, and partner at Dhillon Law Group, has replied to a tweet about the news. He noted that “anyone could say anything in a case.”
In a lawsuit, anyone can say anything
— Ron Coleman (@RonColeman) June 16, 2022
I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.