The cryptocurrency industry is an endless reservoir of fascinating stories. An American citizen has filed a complaint against Elon Musk, whom he accuses of having used his influence to manipulate the price of a cryptocurrency, dogecoin.
The whimsical boss of Tesla – and perhaps soon that of Twitter – finds himself entangled in a preposterous legal case. In the United States, Elon Musk, as well as his companies Tesla and SpaceX are targeted by a 258 billion dollar complaint filed by Keith Johnson, a “American citizen who was defrauded by a pyramid fraud set up by the defendants around dogecoin“, details the letter addressed to the Manhattan court.
Dogecoin: from joke to success
To fully understand this story, you have to go back a little in time. Never stingy with ideas to get people talking about him, Elon Musk started promoting the use of dogecoin, a cryptocurrency invented in a humorous way in 2019. In a first tweetthe businessman explained that “the dogecoin is ball” before continue to tweet regularly on the subject. In 2021, rebelote and Elon Musk explains that Tesla will now accept payments in dogecoin and Space X “was literally going to take a dogecoin to the moon.“
As a result, cryptocurrency began to catch the eye of the public and investors. Hard to resist when the richest man in the world claims to its 98 million subscribers that dogecoin is “people’s cryptocurrency“. Regardless of whether dogecoin was originally thought of as a satire on wild cryptocurrency speculation, the interest was there and the value of the cryptocurrency surged in the months that followed.
The outsized influence of Elon Musk
Except that since then, the fervor has subsided and the value of dogecoin has fallen from 74 cents in May 2021 to 5.8 cents today. An appearance by Elon Musk on Saturday Night Live, where the man called cryptocurrency “ascam“, did not help. This is where Keith Johnson’s complaint comes in. Seduced by the fashion for dogecoin, the man invested in the business before losing his money with the fall in value. According to he, the person responsible for this disaster is all found: it is Elon Musk.
“The defendants knew since 2019 that dogecoin had no value and yet they promoted it in order to profit from their trading” details the complaint filed across the Atlantic. “Musk used his status as the richest man in the world to exploit and manipulate the dogecoin pyramid scheme for profit, exposure and amusement” denounces Keith Johnson. The man claims the reimbursement of the debts created by the collapse of the value (approximately 86 billion dollars) and the double in damages. In all therefore, it is claimed from Elon Musk, SpaceX and Tesla the trifle of 258 billion dollars.
Keith Johnson also wants to ban Elon Musk from promoting dogecoin on Twitter and wants to rebrand cryptocurrency trading as “game of chance” in order to better regulate the practice. In this period of fall of cryptocurrencies, the complaints of the investors multiply and nothing says that this one will succeed.