Elon Musk gets hit with ‘ridiculous’ $258B Dogecoin lawsuit
The class-action lawsuit has raised many eyebrows in the crypto community with many confident the suit will not be successful.
The damages sought are more than 34 times Dogecoin's current market cap of $7.5 billion and approx three times its ATH market cap of $88.68 billion in mid-2021.
Filed in the New York District Court by an attorney at Evan Spencer Law on Thursday, the class-action lawsuit alleges that Mask "used his pedestal as world's richest man to operate to manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement"
Plaintiff Keith johnson a U.S citizen alleges that Musk and his corporations were "unjustly enriched" by $86 billion as a result of wire fraud, gambling enterprise, false advertising, deceptive practices, and other unlawful conduct.
Johnson claims that he and others in the class action have lost approx $86 billion between May 21 and June 22 and is demanding that figure in monetary damages along with another $172 billion in damages and fees.
"Defendant Musk is the self-appointed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin, who assembled the ‘Doge Army’ including his corporations and various billionaires, influencers, and celebrities to increase the price, market cap and trading volume of Dogecoin.”
Musk announced that his Tesla would accept Dogecoin as payment for the company's merchandise in May. he declared that Dogecoin payments would also be accepted by his space exploration company SpaceX.
The Lawsuit also demands an order declaring the trading of Dogecoin to be constituted as gambling within New York and federal law, as well as Musk and his companies, have violated state and federal gambling acts.
Plaintiff and the class were not advised that the trading of Dogecoin was nothing more than a gambling enterprise. Plaintiff and the class demand the return of all wagers lost trading Dogecoin."
It also seeks to order Musk and his companies and any other Unlicensed professionals from advertising marketing or promoting Dogecoin in the Future.
Dogecoin creator Shibetoshi Nakamoto, a tweet whose was cited in the lawsuit as supporting evidence called the lawsuit "stupid as fuck" on Twitter on Thursday, but admitted that crypto trading isn't much different from gambling.
The real reason they are suing @elonmusk isn't just because he's the richest man but because they want to end #dogecoin because they fear it and they want to make sure it is labeled as gambling by us law pic.twitter.com/tJTsuLxCYz— PFC Mayfield not not Jeff beztoe or elon (@nmayfield28) June 16, 2022
Rahul Sood CEO and Co-founder of irreverent Labs, which builds blockchain games called it a "stupid class-action lawsuit"
“Amazing that in the US someone could launch such a stupid class-action lawsuit. These guys all knew what they were getting into. Ridiculous."
Ron Coleman, a commercial litigator and partner at Dhillon Law Group with 196,999 Twitter followers replied to a Tweet about the news, that anyone can say anything in a lawsuit.
.@elonmusk sued for $258 BILLION over alleged $DOGE 'Pyramid Scheme' Johnson v. Musk, SDNY (Manhattan).— The Dirty Truth (Josh) (@AKA_RealDirty) June 16, 2022
Keith Johnson sued Musk and his companies, claiming they engaged in illegal racketeering to raise the price of $DOGE.
This is what happens when you’re against the machine.