Elon Musk is accused of promoting Dogecoin by building companies in a pyramid scheme with Tesla and SpaceX to profit from trading. A US citizen has filed a $258 billion lawsuit against Elon Musk for establishing a pyramid scheme during the Dogecoin promotion phase.
DOGE gained more than 18,000% as it rose from $0.004 to $0.73 in just over four months last year. DOGE, which started to decline from its peak level in the second half of 2021, lost 92 percent of its value from its peak price in May last year.
In the lawsuit filed in New York, Elon Musk is accused of using his position to create a pyramid scheme for Dogecoin and manipulate the cryptocurrency. While the plaintiff demands that the case be converted into a class action lawsuit for those who have suffered losses from Dogecoin, it is demanding $86 billion in compensation and an additional $172 billion in non-pecuniary damages.
Elon Musk has not yet commented on the case
Apart from Elon Musk, the plaintiff is suing their company Tesla for using Dogecoin as a payment instrument and SpaceX for naming one of its satellites Dogecoin. In addition to the $258 billion lawsuit, Musk, Tesla and SpaceX are also requested to be banned from promoting DOGE.
Earlier this year, Tesla, of which Elon Musk is the CEO, announced that it has started accepting Dogecoin payments for products and services, not for electric car sales. Elon Musk, who currently manages the Twitter acquisition process, did not comment on the lawsuit filed against him.
Dogecoin (DOGE) price was recorded as $0.0576 at the time of writing, according to CoinMarketCap data. DOGE's trading volume in the last 24 hours is $653,372,523 USD. Dogecoin's current CoinMarketCap rank is #10 and its market cap is $7,650,531,148.