Elon Musk Sued For Dogecoin Shilling

Billionaire Elon Musk and his companies Tesla and SpaceX have been sued by an American investor for their connection to Dogecoin (DOGE).

According to Bloomberg, an American citizen named Keith Johnson has filed a lawsuit against Elon Musk and his two companies as CEO, SpaceX, and Tesla, alleging that they both fraudulently lured investors into the cryptocurrency Dogecoin, causing heavy damage.

Johnson claims to be representing a group of investors that have lost money from investing in Dogecoin since April 2019. This person asked the defendant to pay a total of $258 billion, as well as wanted the federal court located in New York to order blocking Musk and his companies from promoting Dogecoin, claiming Dogecoin is gambling according to federal and state law.

Johnson said he believes Musk increased “the price, market cap and trading volume of Dogecoin” through his promotion of it.

He included tweets from Musk, the world’s richest man who has more than 98.4 million followers on Twitter, including one promising that SpaceX would “put a literal Dogecoin on the literal moon.”

Johnson named Musk’s Tesla electric carmaker in the suit since it accepts Dogecoin as payment for certain derivative products. SpaceX was also included for having named one of its satellites after Dogecoin.

At the time of writing, Mr. Musk, Tesla, and SpaceX have yet to make an official statement about the incident.

Elon Musk and Tesla officially got into the crypto space with an investment in Bitcoin in February 2021. Tesla is currently maintaining a $1.3 billion investment in BTC even though it no longer supports the world’s largest cryptocurrency because of the “environmental issue” of Proof-of-Work mining. Elon Musk himself has confirmed that he will maintain his BTC investment to “prevent inflation”.

Instead, Tesla accepted DOGE payments for some of the electric vehicle company’s collectibles in January 2022. In May, Mr. Musk revealed that SpaceX was about to do the same.

Elon Musk also recently got involved in many controversies about the Twitter deal for $44 billion. Recently, the billionaire announced that he is reconsidering buying Twitter because of the problem of spam accounts and bots. There have been rumors that after becoming the new boss of Twitter, Mr. Musk will move towards accepting DOGE payments for some of the social network’s services.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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