Elon Musk, Tesla and SpaceX faces a $258 billion lawsuit for what a Dogecoin investor alleges to be a pyramid scheme to pump the meme cryptocurrency.
The suit did not spare the companies that the ultra-rich entrepreneur runs, such as his electric vehicle (EV) and his space exploration company, SpaceX.
It is worth noting that Musk founded both of these tech giants and now sits as their Chief Executive Officer (CEO).
Elon Musk, Tesla, SpaceX Dogecoin Lawsuit
As per a news story by Tech Crunch, cryptocurrencies have been sinking in value continuously for the past couple of weeks due to a massive sell-off from their investors.
The top coins out there, such as Bitcoin and Ethereum, to name a few, are now priced far from their all-time-high glory. As such, holders of cryptos have lost their paper gains, unfortunately sinking their investments by significant amounts.
But an investor of Dogecoin appears to be attempting to get back what he lost.
A meme coin investor brought Elon Musk to the federal court in Manhattan on June 16, Thursday, for a class action suit, which alleges the billionaire and his firm of running a pyramid scheme.
Dogecoin and Elon Musk
Tech Crunch further notes that Musk does not shy away from mentioning Dogecoin on his favorite social media platform, Twitter. In fact, the news outlet says that when the Tesla CEO talks about the meme coin, its prices typically skyrockets.
So, the plaintiff referenced some of Musk's tweets in the lawsuit. In one of his tweets, the tech CEO even dubbed himself the "Dogefather."
This was interpreted by the Dogecoin investor as proof that the Tesla boss controls the said crypto. The plaintiff adds that it also makes Musk liable for the money that its investors lost.
It is to note that Doge is now valued for roughly around $0.05 in the past few days. It is in stark contrast to its high of nearly a dollar or $0.74.
Dogecoin Pyramid Scheme?
According to a recent report by Reuters, the lawsuit against Musk and his companies boldly accused him of illegal racketeering to keep the prices of Dogecoin high.
The plaintiff also says that after Musk increased its price, he allowed it to go down.
The investor also said that the CEO of Tesla and SpaceX knew that the meme crypto "had no value yet promoted Dogecoin to profit from its trading."
The complaint also alleges that "Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure, and amusement."
