Elon Musk is being targeted by a class-action lawsuit over allegations that he was running a pyramid scheme to promote the meme coin $DOGE.
- Bloomberg reports that Musk is being targeted by Keith Johnson, an American citizen who claims that he was “defrauded out of money by [Musk’s] Crypto Pyramid Scheme.” Johnson seeks $258 billion in total with $86 billion in damages and $172 billion in treble damages.
- Along with Musk, the lawsuit includes both Tesla and SpaceX as part of the alleged pyramid scheme, although according to Reuters there is yet to be any specific evidence that proves Dogecoin is worthless and that Musk had run a pyramid scheme.
- Johnson wishes that under federal and New York law, Dogecoin should be considered gambling and that Tesla and SpaceX should be forbidden from ever promoting it again.
- Back in January, it was announced that Tesla was officially accepting Dogecoin for certain payments and then in February it was announced that Dogecoin was being accepted as payment at Tesla superchargers.
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