Billionaire and Tesla boss Elon Musk has been vocal about his support for Dogecoin for a long time. The SpaceX CEO has also put the meme coin ahead of other digital assets such as Bitcoin in the past. However, in a recent update, Elon Musk’s support for Dogecoin will cost him so much after being slammed with a lawsuit of over $258 billion. According to the filing details, the Tesla boss and his company have been involved in a pyramid scheme involving the digital asset.
The lawsuit claims Elon Musk ran Dogecoin as a Ponzi scheme
According to records, the amount the plaintiffs are asking for in the lawsuit is 30x the current market cap of the digital asset. Similarly, it is also about three times its all-time value. In the lawsuit submitted to a New York court, the plaintiff claimed that Elon Musk used his influential status to move the token.
According to the details, they claimed that he could manipulate the coin, which was to his benefit and amusement. A lawyer who is part of the plaintiffs also argued that Musk got profits of about $86 million from the scheme. Asides from that, he claimed that the Tesla CEO had been involved in fake advertisements and other illegal activities to rack up that mammoth amount.
Crypto community rubbishes lawsuit
The lawyer also claimed that all the plaintiffs lost about $86 million dealing in Dogecoin from May last year to June this year. He wants the court to order Elon Musk and his companies to pay him and the other plaintiffs the sum with additional damages and legal fees. The filing also installed Musk to the status of the founder of Dogecoin, which means he was aware of everything going on regarding the digital asset. The lawsuit also claimed that he appointed many influencers identified by the ‘DOGE Army’ tag to help push the price of the coin.
Tesla announced at the beginning of the year that customers who prefer to pay for their cars with Dogecoin could do so. Musk also announced that SpaceX would accept payments in the digital asset. The lawsuit also prayed the court to establish Dogecoin as a gamble which could be recognized under federal laws. However, the crypto community has laughed off the lawsuit, with top analysts calling it outrageous. Although the creator of Dogecoin said, trading crypto could pass as gambling but said the lawsuit was rubbish.