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Topics: Elon Musk, Cryptocurrency, Dogecoin
Stewart Perrie
Topics: Elon Musk, Cryptocurrency, Dogecoin
Elon Musk has been hit with a lawsuit that is worth more than a quarter of a trillion dollars.
The tech billionaire, along with his companies SpaceX and Tesla, have been named in a legal challenge over an alleged pyramid scheme involving the Dogecoin cryptocurrency.
Keith Johnson, who describes himself 'as an American citizen who was defrauded out of money by defendants' Dogecoin Crypto Pyramid Scheme', has launched the lawsuit, according to federal court papers filed in Lower Manhattan.
Bloomberg reports Johnson is seeking $86 billion ($AUD 122 billion, £49 billion) in damages as well as tripled damages of $172 billion ($AUD 244 billion, £98 billion) for losses incurred from trading Dogecoin since 2019.
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"Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all," Johnson said in the court filing, as per the New York Post.
"You can’t eat it, grow it, or wear it. It doesn’t pay interest or dividend. It has no unique utility compared to other cryptocurrencies…It’s not secured by a government or private entity."
The lawsuit added: "It’s simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price."
The lawsuit also demands that Musk and his companies stop promoting the meme-themed cryptocurrency.
At time of writing, Dogecoin was worth just over five cents, a far cry from its glory days in May 2021 when it was worth 74 cents.
According to Coinbase, a cryptocurrency exchange, it was created as a joke and is a reference to a popular internet meme.
The coin's value was massively boosted when Musk began tweeting about it in early 2021.
Musk, Tesla, and SpaceX have not responded to the lawsuit.
Musk has a net worth was valued by Forbes at $202 billion ($AUD 287 billion, £115 billion) and is the world's richest man.
He also appears to be on track to be the world's first trillionaire.
In January, Musk revealed that Tesla had begun accepting the cryptocurrency for purchases in its online store, according to the New York Post.
SpaceX also previously boasted that they planned to launch a rocket to the moon entirely funded by Dogecoin.
In a statement, SpaceX's Vice President of Commercial Sales Tom Ochinero said: "This mission will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.
"We're excited to launch DOGE-1 to the Moon!"