As the business magazine Reuters explains, Elon Musk was sued for $ 258 billion. Plaintiff Keith Johnson accuses Tesla and SpaceX CEO of artificially inflating Dogecoin cryptocurrency.
Cryptocurrencies are currently in a difficult position: Coinbase, for example, recently had to lay off around 1,100 employees because the prices of the virtual currency have deteriorated to such an extent that it has to cut costs. According to a calculation by Crypto Slate, ETH mining is no longer profitable in many locations because energy prices have risen significantly due to the war in Ukraine. Elon Musk is now being threatened with trouble by cryptocurrency investor Keith Johnson. As reported by the US magazine Reuters, Johnson accuses the CEO of Tesla and SpaceX of artificially inflating the Dogecoin virtual currency.
Dogecoin just an “expensive joke”?
The Dogecoin currency, originally introduced as a joke, has been around since 2013 and had hardly any value for a long time. As far as in July 2020 Elon Musk tweeted, who referred to Dogecoin and the global financial system. Musk also claimed – briefly – that he was former Dogecoin CEO in his Twitter bio. Within days, the virtual currency skyrocketed thanks to Elon Musk’s tweets. In May 2021, the cryptocurrency reached a price of US $ 0.74. When Musk hosted the cult comedy Saturday Night Live, playing a fictional financier who called Dogecoin “a farce,” the price started to drop. Currently, the rate for the cryptocurrency is only around US $ 0.06.
Keith Johnson, who has invested heavily in virtual currency, is suing Elon Musk for $ 258 billion. Eventually, Musk used his notoriety status to “manage and manipulate the Dogecoin pyramid scheme for profit, outreach and entertainment.” Johnson is asking for $ 86 billion in damages, which corresponds to the decline in Dogecoin’s market value since May 2021. Furthermore, Elon Musk should no longer be allowed to advertise this cryptocurrency. In February 2021, electric car maker Tesla said it had bought 1.5 billion bitcoins and, briefly, accepted cryptocurrency as payment for vehicles.
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Compilation on the lawsuit against Elon Musk:
- Dogecoin investor Keith Johnson is suing Elon Musk for $ 258 billion. Johnson wants $ 86 billion in damages.
- According to the lawsuit, Musk allegedly used his notoriety to increase the value of Dogecoin cryptocurrency in 2020. In May 2021, the cryptocurrency reached a price of US $ 0.74.
- However, when Musk played a fictional financial wizard in the comedy Saturday Night Life who called Dogecoin “a scam,” the price started to drop.
Sources: Reuters, Twitter