Elon Musk Faces $258B Lawsuit For Alleged Dogecoin 'Pyramid Scheme'

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The world’s richest man is back at it again with another lawsuit. Elon Musk has been sued for $258 billion for his alleged involvement in defrauding investors during a Dogecoin pyramid scheme.

Fortune reports that the tech mogul has been sued by American citizen Keith Johnson “who was defrauded out of money by defendants’ Dogecoin Crypto Pyramid Scheme.” The defendants include Musk and his Tesla company as well as his SpaceX corporation. Johnson will represent not only himself but a group of investors who suffered similar losses due to Dogecoin trading that stems back to 2019.

The Lawsuit

Per the suit, “since Elon Musk and his corporations SpaceX and Tesla, Inc. began purchasing, developing, promoting, supporting, and operating Dogecoin since 2029, [the] Plaintiff and the class has lost approximately $86 billion in this Crypto Pyramid Scheme.” An additional $172 billion in damages were also named in the complaint.

Furthermore, Johnson and his crew believe that the “defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.” The suit insists that Musk, as well as his companies, discontinue promoting the form of cryptocurrency.

Using Celebrities & High Profile Names to Promote Dogecoin

As previously reported by AfroTech, celebrities like Kim Kardashian and Floyd Mayweather have also been the center of suits that allege they promoted a form of cryptocurrency that led people astray. In this particular instance, the accusations continue. According to Johnson, Musk purposely drew in “the support of celebrities, influencers and billionaire investors” through platforms like TikTok, Facebook, Twitter, and Instagram. Reportedly using such large entities and social media sites was a move to boost “the price, trading volume, and market cap of Dogecoin.”

Celebrities listed in Johnson’s suit include Snoop Dogg, Lil Yachty, Mark Cuban, and more. Musk has not yet responded to the accusations.