Elon Musk sued for $258bn over claims he ran a pyramid scheme to advertise Dogecoin

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Elon Musk is being sued for $258bn (£209bn) over accusations he ran a pyramid scheme to advertise a cryptocurrency known as Dogecoin.

The digital asset was launched as a joke in 2013 and was designed to mock Bitcoin.

However the cryptocurrency – also referred to as DOGE – hit the headlines after surging dramatically final yr.

In just a little over 4 months, Dogecoin rallied from $0.004 to $0.73 – a acquire of greater than 18,000%.

Musk repeatedly tweeted about DOGE throughout this era, and on the day the coin started to fall, he described it as a “hustle” on the US comedy present Saturday Evening Dwell.

Dogecoin has fallen dramatically over the previous yr – and on the time of writing, it has fallen 92% from the report excessive seen final Might.

The world’s richest man – alongside Tesla and SpaceX, the businesses he’s CEO of – are accused of “selling Dogecoin to revenue from its buying and selling”.

A criticism filed in a New York court docket provides: “Musk used his pedestal because the world’s richest man to function and manipulate the Dogecoin pyramid scheme for revenue, publicity and amusement.”

Musk is being sued by an American man known as Keith Johnson, who alleges he was “defrauded out of cash” because of the entrepreneur’s endorsements.

Mr Johnson’s attorneys assert that the cryptocurrency “has no worth in any respect” – and court docket filings function quotes from billionaires Invoice Gates and Warren Buffett, who’ve each questioned the worth of such digital belongings.

The plaintiff desires to symbolize those that have misplaced cash via Dogecoin since 2019.

Past his calls for for $258bn in damages, he additionally desires Musk, Tesla and SpaceX to be banned from selling DOGE.

Earlier this yr, Tesla started accepting Dogecoin as a fee methodology for merchandise – however not its electrical vehicles.

Elon Musk – who is currently in the process of taking over Twitter – is but to touch upon the lawsuit.

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