What? The multimillionaire was just hit with a $258 billion lawsuit? Yeah, we also have been searching for the same facts. While you may have already gathered bits and pieces of information from here and there, we bet you didn't know these secrets.
The lawsuit was launched by Keith Johnson, an American citizen. Why did he do so? Well, he claims that he has been scammed with a large sum of money in a pyramid scheme that involved Dogecoin Cryptocurrency.
According to Johnson, Elon Musk has driven up the price of Dogecoin through his repeated tweets about its value. He also said that he has collaborated with its developers. As soon as we read that, we dug up some truth and found these tweets-
In a tweet, Elon Musk wrote, "Lots of people I talk to in the production lines at Tesla or building rockets at SpaceX own Doge."
Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge. They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge – it felt like the people’s crypto.— Elon Musk (@elonmusk) October 24, 2021
In another tweet, Elon Musk wrote: "Fundamentally, Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions."
Keith Johnson was right when he said that Elon Musk raving about Dogecoin has repeatedly increased its value. But what is not right in the actual case is that, in Johnson's words, "Dogecoin lacks underlying value and Musk promoted it for his own profit, exposure, and amusement."
Johnson even requested a ban on Elon Musk from promoting Dogecoin. He further said Dogecoin trading should be declared as a form of gambling under federal New York Law. The lawsuit stated, "It's simply a fraud whereby great fools are deceived into buying the coin at a higher price."
Johnson goes on to say, "Dogecoin is not a currency, stock or security. It's not backed by gold or any other precious metal, or anything at all. You can't eat it, grow it or wear it. It doesn't pay interest or dividend. It has no unique ability compared to other cryptocurrencies…. It's not secured by a government or private entity."
As per a Bloomberg report, Keith John is seeking compensation of $86 billion plus tripled damages of $172 billion for the losses he faced from trading in Dogecoin since 2019.
Interestingly the meme-themed Dogecoin’s value has dropped drastically since after the lawsuit. To be precise, the value of Dogecoin at the time of writing was just 5 cents, which is ridiculously low from May 2021, when its worth was 74 cents.
People's reactions over twitter are worth giving a glance. Here's what people are saying about it.
Elon isn’t going to like this publicity. It’s called karmahttps://t.co/mRktnYcSI8— iamtheOne (@iamtheonexo) June 17, 2022
Musky is getting sued Ruh-roh Scooby looks like his legal team has got some work to do now.— christy morris 🧚♂️💙💛 (@polarsprite) June 17, 2022
Elon Musk sued for $258 billion over alleged Dogecoin pyramid scheme https://t.co/3kwXCXdeg7
Elon Musk is 100% going to support #Dogecoin even harder now after he was just frivolously sued to the tune of 258 billion for tweeting about how awesome it is!— Matt Wallace (@MattWallace888) June 17, 2022
You really going after the richest person in the world ? Good luck 😂 now i have no doubt he made alot of money because of doge snd the tokens he pumped but when you have that much power and money who will stop you — Rashid (@Rsalblooshi) June 16, 2022
He can afford to settle for full price. LOL.— Grant Stern is boosted! (@grantstern) June 16, 2022
This is good. It will disclose whether crypto is legit or not. If all the numbers are in order, then it will instill crypto investors with certainty and relief in their product. If it exposes a pyramid scheme that investors didn't know about, that will be good for exposing fraud.— JGreen (@GundergroundJG) June 17, 2022
Good. Hope they win.— Dr Alicia Beck (@AliciaBeck20) June 16, 2022
Elon Musk, Tesla, and SpaceX have not responded to the lawsuit yet, but we can't wait to see where this lawsuit heads.