Elon Musk sues for $258 billion in Dogecoin cryptocurrency

In a class action lawsuit filed last week in a New York district court, Musk was charged with “using his position as the richest man in the world” to support the “financial pyramid scheme” that Dogecoin claims to be, “for profit and pleasure”.

Lawsuit author Keith Johnson, a US citizen, claims that Musk and his companies SpaceX and Tesla Inc. “unfairly” earned $86 billion as a result of unfair practices around Dogecoin – false advertisements and misleading information. The lawsuit said, among other things, that Dogecoin’s popularity began around the time Musk appeared on NBC’s “Saturday Night Live,” where he played a fictional financial pundit on “Weekend Update,” making the praise of cryptocurrency.

Musk made Dogecoin popular

In April this year. The Tesla creator tweeted “Doge Barking at the moon”, sharing a photo of a painting by Spanish artist Joan Miró titled “Doge Barking at the Moon”. It also fueled the popularity of the “dog” cryptocurrency. He also publicly joked that he would give cryptocurrency to his mother on Mother’s Day.

As a result, the victims allegedly lost USD 86 billion during the period of May 2021 to June 2022 and are claiming the said amount in the form of compensation and an additional USD 172 billion in damages.

Complainants claim Dogecoin is “an ordinary scam where fools are tricked into buying cryptocurrencies at the highest possible price”

The compensation claimed is more than 34 times the current market value of Dogecoin at $7.5 billion and nearly three times its highest value on record – which was $88.68 billion in mid-2021.

Defendant Musk is the self-proclaimed “Father of Dogecoin” (org. Dogefather), Dogecoi official, partner, seller, spokesperson, commentator, distributor and promoter of Dogecoin who has assembled a fan community (“Doge Army”) comprising his companies and various billionaires, influencers and celebrities to increase the price, market capitalization and trading volume of Dogecoin” – described in the lawsuit.

The lawsuit also demands that the court declare the Dogecoin trade to be gambling under New York and federal law, and that Musk and his companies be a violation of state and federal gambling laws. The billionaire, owned companies, and other unauthorized intermediaries would also be banned from advertising any Dogecoin cryptocurrency in the future.

Cryptocurrencies are depreciating. How Much Has Dogecoin Lost?

The creator of the Dogecoin reviewer, Shibetoshi Nakamoto, previously referred to the lawsuit news on Twitter. He called the plaintiffs’ claims “dumb as hell” while admitting that cryptocurrency trading is not much different from gambling.

Elon Musk himself does not comment on the matter.

Tesla announced in February 2021 that it had purchased $1.5 billion worth of bitcoins and briefly accepted them as payment for vehicles.

After the publication of information on the lawsuit against Musk, the course Dogecoin was around 5.8 cents, down from its May 2021 high of around 74 cents.

Cryptocurrencies have fallen sharply in value in recent weeks. The most famous Bitcoin peaked several percent in mid-June to the lowest level since December 2021. Ethereum (16.422%), Dogecoin (16.970%) and Tron (15.597%) are also losing.

The reasons for the low rates are rising inflation in the United States, US Federal Reserve System policy, and growing investor concerns about further loss of funds invested in cryptocurrencies.

‘Cryptocurrencies are at the mercy of the Fed (US Federal Reserve System) and are stuck in a dance with the Nasdaq and other risky assets,’ says Antoni Trenchev, co-founder and managing partner of the lender of Nexo cryptocurrency. , what macro cryptocurrency environment we are dealing with for the first time – and with what level of fear.

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