With any news around Elon Musk and Tesla, the Dogecoin price often skyrockets almost instantly. In the latest development, a US citizen accuses Elon Musk of alleged involvement in Dogecoin-related scams.
Elon Musk faces lawsuit over Dogecoin fraud
According to a Bloomberg report, Elon Musk is facing $258 billion in damages for Dogecoin-related allegations. The lawsuit alleges that they were part of a “blackmail scheme” to support Dogecoin.
“Dogecoin ponzi scheme”
The report states that the lawsuit was filed by US citizen Keith Johnson. Johnson’s defendants were allegedly “defrauded by the Dogecoin Crypto Ponzi Scheme.” Among the allegations that Elon Musk created an illegal blackmail attempt to inflate the price of Dogecoin. In a complaint to the federal court in Manhattan on Thursday, plaintiff Johnson said:
Defendants falsely and deceptively claim that Dogecoin is a legitimate investment even though it has no value.
Elon Musk’s request to block Dogecoin ads
In the complaint, Johnson sought to represent anyone who has lost money in Dogecoin since April 2019. He also demanded a lawsuit against Musk, demanding $86 billion in damages and $172 billion in triple damage. Accordingly, he wants the court to issue a ruling that prevents the Tesla CEO from promoting the world’s largest memecoin. Johnson also wants DOGE transactions to be declared gambling under state and federal law in the Musk Dogecoin case.
Recently, Musk announced that Tesla products can be purchased using DOGE and raise the price of the token. He also revealed that Dogecoin could also be used to purchase SpaceX products very soon.
Elon Musk is known to own DOGE. At the same time, he often openly supports the meme coin in his tweets. Tweets almost always attract positive price action for Dogecoin. Musk’s interest in buying the social media platform Twitter also aroused interest in the DOGE purchase.
Elon Musk’s Doge tweets
On Friday, May 27, 2022, Elon Musk posted another tweet that boosted Dogecoin for a few hours. It has announced that official Tesla products can now be purchased using DOGE. He also tweeted that SpaceX would do the same shortly after.
Elon Musk also in a series of tweets on April 9 suggested changes to Twitter’s subscription service Twitter Blue, saying it could include Dogecoin as a payment option for the service. As Kriptokoin.com, we have discussed the latest developments in this article.
Finally, Musk and Doge tweeted in June 2020 as below.
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