American Keith Johnson has invested in Dogecoin. Then he lost money. He is now claiming an astronomical sum from businessman Elon Musk.
Because of the fall in the value of this crypto-asset, this ruined citizen is asking Elon Musk for 86 billion dollars in compensation, and double in damages. He claims that the CEO of Tesla is responsible because of the promotion he made around Dogecoin. However, the legal proceedings have little chance of success.
A class action at 258 billion dollars for pyramid fraud
Little is known about Keith Johnson, the American investor who filed a group complaint against Elon Musk on June 16 in a New York court. At stake, more than 258 billion requested from the boss of Tesla, who has always made rain and shine on the price of Dogecoin, a cryptocurrency created for the joke and which had its heyday in 2021.
The story of this vast joke-like coin is well known to crypto investors. Dogecoin still held at less than 1 cent before May 2021, when Elon Musk promoted the project on Twitter. The price of Dogecoin then exploded before falling inexorably in 2022. Faced with the complaint filed, the judges will have to determine whether or not the richest man in the world is at the origin of a pyramid fraud.
The sum of 258 billion dollars seems exorbitant, and there is little chance that Elon Musk will end up paying. Despite the Tesla boss’s somewhat wacky interventions on the subject – we recall an SNL sketch in which he described the token as an outright “scam” – there is still no evidence that the billionaire either involved in a Ponzi scheme or that the Dogecoin is fraudulent in nature.
Source : Reuters
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