- Musk’s ways of promoting Dogecoin has landed him in another legal battle.
- The plaintiff claims that the coin has no underlying value.
Scams and frauds are common phenomena in the crypto ecosystem. On June 16, Elon Musk, SpaceX, and Tesla were sued by Keith Johnson for at least $86 billion in damages and wanted it tripled. Musk has been alleged of “manipulated” the value of Dogecoin in an intentional “crypto pyramid scheme” that was conducted over Twitter.
The plaintiff has said that Musk promoted Dogecoin aggressively on Twitter to pull up the price but he has claimed that the currency lacks “underlying value”. Johnson has criticized Musk for promoting it for his personal “profit, exposure, and amusement.”
He has also requested the court to prohibit Musk from promoting Dogecoin and that its trading should be declared a form of gambling under federal and New York law. The suit claims that Dogecoin is an “illegal wire fraud enterprise”.
Musk’s way of promoting Dogecoin has earlier caught the attention of the authorities. Back in 2021, the Securities and Exchange Commission launched an investigation after Musk tweeted, “I will literally pay actual $ to people who void their Dogecoin accounts.”
The recent complaint lodged against him says that he has been using his fame as World’s Richest Man. Musk and his companies are yet to make any comment on the allegations made.