Elon Musk Faces $258 Billion Lawsuit Over Alleged Dogecoin Pyramid Scheme

Written by:
Aaron Goldstein
Published on:

Elon Musk is being sued for $258 billion over an alleged pyramid scheme involving the digital coin Dogecoin.

The case was filed last week in federal court in Manhattan with plaintiff Keith Johnson claiming Musk touted Dogecoin and pushing up the price, only to have it crash.  Musk even announced Dogecoin would be accepted as a form of payment for some merchandise tied to Tesla, the auto company he runs.

The complaint reads: "Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading. Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement."

Dogecoin went from being worth just a fraction of a penny at the start of 2021 to notching a record-high price above 74 cents five months later. It now sits at just 0.057 as of June 19, 2022.

Johnson is seeking damages in the amount of lost market value of Dogecoin over this past year: $86 billion.

Current Musk Twitter Odds (June 19, 2022)

Musk Twitter Takeover Share Price

Under 41.5 $ -120

Over 41.5 $ -120

Elon Musk Twitter Takeover

No -275

Yes +185

Available live odds here

Bitcoin Drops Below $18K

It's been another rough weekend in the world of cryptos, Bitcoin in particular.  That cryptocurrency dropped to a low of $17567 Saturday.  By Sunday morning Eastern Standard Time there was some recovery to $19357.

In the last week, Bitcoin has lost 31% of its value, and nearly 36% of its value over the past month.  Bitcoin peaked at $68,789.63 last November.

The digital currency sector has taken a severe hit after cryptocurrency lending company Celsius froze withdrawals last weekend while exchange Coinbase abruptly cut 18% of its staff.

Crypto hedge funds continue to have insolvency concerns.

Cryptocurrencies and Blockchain Still Vital

Paxos CEO & Co-Founder Charles Cascarilla told CNBC. says that investors are not yet turning their backs on those crypto investments that have potential.

“The fundamental technology here and the adoption curve that we see, the institutions that are coming in, how you can get your financial system to operate at the speed of the internet, those are things that need to happen,” he said.

At last month's BSV Global Blockchain Convention 2022 in Dubai, outgoing Bitcoin Association President said “We have that opportunity now with Bitcoin and blockchain to recreate what should have been created with the internet.  Do you want a world with just investment speculation?”

He further noted that BSV Blockchain has the potential - and already is - disrupting the way in which we share data and promote value-exchange protocol.

Investors new to the digital assets space need to keep in mind that adoption of disruptive technologies doesn’t always occur on the smoothest of terms, writes Tom Lydon of VettaFi.

Blockware Solutions examined past adoption trends, everything from automobiles to radio to smartphones, and concluded that Bitcoin adooption will reach saturation quicker than many of these technologies.

The research firm cites the need for "direct monetary incentives to adoptmacro environment end game, and rails of adoption growth being the internet; and the most efficient state of informational spread on the internet ever."

- Aaron Goldstein, Gambling911.com

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