Dogecoin investors unable to bear losses, sue Elon Musk! Claiming "pyramid scheme" and seeking $258 billion in compensation

Recently, cryptocurrency has been under pressure from inflation and the downturn in the US stock market, leading to continuous decline. The price of Dogecoin has dropped to $0.05. Dogecoin (DOGE) investor Keith Johnson is preparing to sue Tesla CEO Musk and Tesla and SpaceX, seeking $258 billion in damages, accusing them of artificially inflating cryptocurrency prices through a "pyramid scheme."

According to reports, Keith Johnson has filed a lawsuit in Manhattan federal court, accusing Musk and his companies of fraud, violating federal and state extortion and gambling laws, and seeking a class-action lawsuit on behalf of Dogecoin investors who have been losing money.

According to the lawsuit, Musk allegedly falsely and deceptively claimed that Dogecoin was a legitimate investment, "but it has no intrinsic value. Dogecoin is not money, stock, or securities." "It is a fraud, 'the greater fool' is deceived into buying the token at higher prices."

Keith Johnson is seeking $860 billion in damages, representing the amount he claims to have lost in investments since Musk began buying and promoting Dogecoin in 2019, plus triple damages, for a total claim of $2.58 trillion.

Keith Johnson also seeks to halt Musk and his companies from promoting Dogecoin, arguing that trading Dogecoin should be treated as gambling.

The lawsuit cites dozens of Dogecoin tweets by Musk, alleging that Musk intentionally manipulated its price and also detailing Musk's history of non-compliance with the U.S. Securities and Exchange Commission.

Dogecoin traded at just 0.25% before 2021, soaring to around $0.68 in April of that year, reaching a historical high market value of nearly $5 billion. It is currently at $0.05, down 68% year to date, and has dropped 81% over the past 12 months.

This article is authorized reprint from Horizon News Network