Buzz
A group of investors has filed a lawsuit against Elon Musk in federal court.
According to Bloomberg, an American citizen named Keith Johnson has filed a lawsuit against Elon Musk and two of his CEO-led companies, SpaceX and Tesla, alleging manipulation and enticing investors into the cryptocurrency Dogecoin (DOGE), resulting in substantial losses.
Johnson claims to represent a collective of investors who have incurred losses from investing in Dogecoin since April 2019. He is seeking total compensation of $258 billion and wants the federal court in New York to issue an injunction against Musk and his companies to cease promoting Dogecoin, arguing that Dogecoin constitutes gambling under federal and state law.
Johnson wrote in the lawsuit:
'The defendant misrepresented Dogecoin as a legitimate investment when it has no inherent value.'
At the time of writing, Mr. Musk, Tesla, and SpaceX have yet to issue an official statement on the matter. DOGE is currently trading around $0.057, down nearly 93% from its peak of $0.73 in May 2021, when Elon Musk began promoting Dogecoin on American television.
Elon Musk and Tesla officially entered the cryptocurrency arena with an investment in Bitcoin back in February 2021. Tesla still holds a $1.3 billion investment in BTC despite no longer supporting the world's largest cryptocurrency due to environmental concerns surrounding Proof-of-Work mining operations. Elon Musk himself has stated that they will maintain their BTC investment as a hedge against inflation.
(Reference: coin68).
