Daily Management Review

Elon Musk accused in Ponzi scheme with Dogecoin


Keith Johnson, an American, has launched a lawsuit against Elon Musk and his firms SpaceX and Tesla, accusing them of constructing a "crypto Ponzi scheme," a structure designed to artificially raise the value of the Dogecoin cryptocurrency.

According to Bloomberg, the plaintiff is ready to represent other people who, like him, have lost money "on this scam" and is demanding $258 billion in damages for losses he has sustained on cryptocurrency purchases and sales since 2019.

Keith Johnson also wants the court to stop Elon Musk and his firms from advertising Dogecoin and to classify Dogecoin trade as gambling under US and New York state law.

"Defendants fraudulently claim that Dogecoin is a genuine investment vehicle, when it is worth nothing at all," according to Mr. Johnson's lawsuit.

source: bloomberg.com