Elon Musk sued for $258 billion for allegedly running a pyramid scheme to promote Dogecoin | Scientific and technical news

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Elon Musk is being sued for $258bn (£209bn) for running a pyramid scheme to promote a cryptocurrency called Dogecoin.

The digital asset was launched as a joke in 2013 and was designed to poke fun at Bitcoin.

But the cryptocurrency – also known as DOGE – has grabbed the headlines after surging significantly over the past year.

In just over four months, Dogecoin has gone from $0.004 to $0.73 – a gain of over 18,000%.

Musk regularly tweeted about DOGE during this time, and on the day the piece started dropping, he described it as a “hustle” on US comedy show Saturday Night Live.

Dogecoin has fallen dramatically over the past year – and at the time of writing, it is down 92% from the all time high set last May.

The world’s richest man – alongside Tesla and SpaceX, the companies of which he is CEO – is accused of “promoting Dogecoin to profit from trading it”.

A lawsuit filed in a New York court adds, “Musk used his pedestal as the richest man in the world to exploit and manipulate the Dogecoin pyramid scheme for profit, exposure and amusement.”

Musk is being sued by an American named Keith Johnson, who claims he was “cheated out of money” as a result of the contractor’s endorsements.

Mr Johnson’s lawyers say the cryptocurrency “has no value” – and the court documents contain quotes from billionaires Bill Gates and Warren Buffett, who have both questioned the value of these digital assets.

The plaintiff wants to represent those who have lost money via Dogecoin since 2019.

Beyond his claims for $258 billion in damages, he also wants Musk, Tesla and SpaceX banned from promoting DOGE.

Earlier this year, Tesla started accepting Dogecoin as payment for goods – but not its electric cars.

Elon Musk- who is currently taking over Twitter – has not yet commented on the lawsuit.

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