Musk and his companies sued for Ponzi-type fraud on Dogecoin

In addition to huge damages, the citizen who sued Musk is asking for a ban on any kind of Dogecoin promotion.

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Keith Johnson, an American citizen has filed a lawsuit against Elon Musk and his companies SpaceX and Tesla claiming $258 billion as he says that Elon Musk created a “Ponzi-type” scam to support Dogecoin.

The American citizen who lost his money in the Dogecoin ”Crypto Pyramid Scheme”, sued Musk and his companies, claiming that they have created an illegal extortion racket to drive up the price of Dogecoin.

As stated in the lawsuit filed today, Thursday, June 16, in Manhattan federal court:

“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment even though it has no value”.

As Bloomberg reports, Johnson is seeking to set an example to people who have lost money in Dogecoin transactions since April 2019. He is seeking compensation totaling $258 billion, as well as a court order preventing Musk and the companies from promoting Dogecoin and a public declaration that Dogecoin trading constitutes gambling under US and New York law.

Both Musk and representatives of his companies did not respond to Bloomberg’s request for comment on the lawsuit against them.

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Dogecoin was trading today at about 5 cents and has lost about 67% this year. It surged to 74 cents last year before giving up those gains.

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