Honestly, who didn’t see this coming?
As reported by Bloomberg.com, a U.S. man sues Elon Musk, SpaceX, and Tesla Inc. for $258 billion on behalf of investors allegedly defrauded by a Dogecoin pyramid scheme.
The claims denounce a potential racketeering scheme to back the cryptocurrency Dogecoin.
Keith Johnson, “an American citizen who was defrauded out of money by defendants’ Dogecoin Crypto Pyramid Scheme,” sued Musk and his companies, claiming they constitute an illegal racketeering enterprise to inflate Dogecoin’s price.
“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all,” Johnson said in his complaint, filed Thursday in federal court in Manhattan.
Johnson is seeking to represent a class of people who have lost money trading in Dogecoin since April 2019. He is asking for $86 billion in damages, plus triple damages of $172 billion, as well as an order blocking Musk and the companies from promoting Dogecoin, and declaring that Dogecoin trading constitutes gambling under U.S. and New York law.
There is still no official stance on the part of Musk, or of any representatives of SpaceX and Tesla, and Tesla’s legal counsel.
The case is Johnson v. Musk, 22-cv-05037, US District Court, Southern District of New York (Manhattan).
When you lose money over bad investment decisions you always blame someone else, unfortunately, the fault is yours alone. On the other hand, a wise popular man should avoid taking a public position on highly speculative assets. The consequences are absolutely predictable.
As a side note, TSLA stock is down 47% since the start of the year at the time of writing, which means down about 580B dollars. Is this the worst performance in terms of the total market cap of a stock ever?
(Disclaimer: I have Tesla stocks. Sigh!)