The class-action case has raised several questions in the crypto industry, with many people predicting that it would fail.
Elon Musk, his firm SpaceX and Tesla Inc, and their CEO Elon Musk is being charged $258 billion in fines for “engaging in a crypto money scheme” using Dogecoin (DOGE).
The penalties requested are approximately three times Dogecoin’s ATH stock price of $88.68 billion in mid-2021, which is more than 34 times its existing market cap of $7.5 billion.
The class-action case, filed on Thursday in New York District Court by Evan Spencer Law, claims that Musk “utilized his eminence as the World’s Richest Man to manipulate and control the Dogecoin Pyramid Scheme for money, notoriety, and pleasure.”
Plaintiff Keith Johnson, a US resident, claims that Musk and his companies were “unfairly benefited” by $86 billion as a consequence of bank fraud, betting, misleading advertising, misleading acts, and other illegal activities, according to the statement.
Johnson says that he and other class members lost $86 billion between May 2021 and June 2022 and is seeking that amount in financial damages, as well as another $172 million in losses and expenses.
Defendant Musk is the self-proclaimed ‘Dogefather,’ the ‘former Chief executive of Dogecoin,’ an associate, coder, spokesman, publicist, salesperson, advertiser, and activator of Dogecoin, who gathered the ‘Doge Army,’ consisting of his corporate entities and various multimillionaires, thought leaders, and celebs, to raise the price, current value, and share price of Dogecoin.”
Musk stated in January that his electric car firm Telsa would take Dogecoin as payment for its goods. He stated in May that Dogecoin transactions would be welcomed by SpaceX, his space travel firm.
The lawsuit also seeks an injunction defining Dogecoin transactions to be betting under New York and federal law, as well as allegations that Musk and his businesses have broken federal and state money laundering laws.
“Because Plaintiff and the community were not informed that Dogecoin selling was nothing but a gaming market, Plaintiff and the class seek the recovery of all bets lost playing Dogecoin.”
The public reacts
The lawsuit has been mocked by the cryptocurrency world.
On Thursday, Dogecoin founder Shibetoshi Nakamoto, which Tweet was used as substantiation in the complaint, branded the lawsuit “dumb as fuck” on Twitter but conceded that cryptocurrency pricing is similar to betting.
It is a “dumb class-action complaint,” according to Rahul Sood, CEO and co-founder of Irreverent Labs, which develops cryptocurrency games.
“It’s incredible that somebody in the United States could file such a frivolous class-action lawsuit. These individuals were all well aware of what they were putting themselves into. Ridiculous.”
Leave a Reply