It may sound like a premise to a joke but there’s a possibility that a billionaire, a Tesla (Nasdaq: TSLA), a SpaceX, and a dog would walk into a court after a class action suit has been filed against CEO Elon Musk and his companies. The complaint: the defendants promoted dogecoin as a legal tender, causing investors to lose money along the way.
Filed in a lower Manhattan court, the lawsuit’s main plaintiff Keith Johnson claims the defendants “are engaged in a crypto pyramid scheme by way of dogecoin cryptocurrency,” allegedly manipulating the market for personal gain.
“Defendants falsely and deceptively claim [dogecoin] is a legal investment when it has no value,” according to the complaint.
Further, the complaint describes the crypto “meme” as a “fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”
For his argument, Johnson claims that “dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it.”
Johnson, who is calling other dogecoin investors who lost money since April 2022 to join the class action suit, is seeking US$86 billion in damages and US$172 billion in triple damages.
Musk, a known supporter of dogecoin, started accepting payments in these crypto assets at Tesla. SpaceX is expected to follow.
Every time he tweets announcements like these, sentiment for dogecoin grows as evidenced by the spike in prices.
The Tesla chief also reiterated that he would not sell his holdings on digital assets, including dogecoin, amid the skyrocketing bitcoin and crypto-at-large prices. Amid the industry crash, dogecoin value increased by 4.79% following the announcement.
Information for this briefing was found via New York Post, BNN, and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.