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Elon Musk faces class action lawsuit over Dogecoin

Keith Johnson, a US investor who bought Dogecoin, has filed a class-action lawsuit against Elon Musk and the two companies he heads, alleging illegal practice aimed at manipulating the price of the memecoin.

The lawsuit alleges: “Since Defendant Musk and his corporations began purchasing, developing, promoting, supporting, and operating Dogecoin in 2019, Plaintiffs and the class have lost approximately $86 billion in losses. la in this multi-level cryptocurrency.”

The lawsuit claims total damages of US$258 billion, three times the amount claimed. Tesla and SpaceX are the two companies named in the lawsuit.

Memecoin has dropped more than 92% from its all-time high of US$0.7376 a year ago.

“It was simply a scam whereby scammers lured investors into buying coins at a higher price,” the lawsuit filed Thursday in US federal court in New York.

The lawsuit asks Musk and his companies to ban Dogecoin advertising, as well as claim Dogecoin trading is like gambling under the laws of the United States and New York.

Neither Musk nor his companies responded on Twitter to the lawsuit.

Dogecoin fell about 7% to US$0.0567 according to CoinMarketCap data.

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