Elon Musk Facing $258 Billion Lawsuit for Promoting Dogecoin

It is already well established that any positive activity around Elon Musk and Tesla often boosts Dogecoins price almost instantly. In a latest development, a U.S. citizen is charging Musk with alleged involvement in Dogecoin related fraud in a Musk Dogecoin lawsuit.

According to a Bloomberg report, Musk, along with SpaceX and Tesla were sued for $258 billion over Doge-related claims. The case filing suggests allegations that they are part of a racketeering scheme to back Dogecoin.

‘Dogecoin Is Deceptive’

The report mentions Keith Johnson as an American citizen who is behind the lawsuit. Johnson was allegedly “defrauded out of money by defendants‘ Dogecoin Crypto Pyramid Scheme.” He claimed that they constitute an illegal racketeering enterprise to inflate Dogecoin’s price.

In his complaint filed on Thursday in federal court in Manhattan, he said,

“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.” For more forex news, please download WikiFX - the Global Dealer Regulatory Inquiry APP.

Demand To Block Musk From Promoting Dogecoin

In the complaint, Johnson sought to represent all those who lost money trading in Dogecoin since April 2019. Demanding $86 billion in damages and triple damages of $172 billion, he also demands action against Musk.

He wants the court to issue an order preventing the Tesla CEO from promoting the worlds largest memecoin. Johnson also wants Dogecoin trading to be declared as constituting gambling under the state and federal law in the Musk Dogecoin lawsuit.

Recently, Musk announced Tesla merchandise could be purchased using Dogecoin, taking the tokens price upwards. It was also announced that Dogecoin could also be used to purchase SpaceX merchandise too soon.

The billionaire himself is a DOGE holder and often openly supports the token in his tweets. The tweets, almost always, attract positive price action for Dogecoin. Musks interest in purchasing social media platform Twitter had also sparked interest in Dogecoin purchasing.