Elon Musk, Tesla & SpaceX Land in $258 Billion Dogecoin Lawsuit
The claim is crystal clear: a hedge fund‑style investor says Mr. Musk, the founder of the electric‑car giant and the space‑venture that takes folks to orbit, ran a pyramid scheme with Dogecoin, driving its price up like a roller‑coaster and then letting it crash.
What the Complaint Says
- The suit names Keith Johnson as the complainant, filing in Manhattan’s federal court.
- It accuses Musk, Tesla Inc. and SpaceX of “racketeering” by championing Dogecoin for personal gain.
- Johnson claims the trio knew from 2019 that Dogecoin had “no intrinsic value” yet they “pushed it to make money.”
- It calls the maneuver a “pyramid” operation that was “up for profit, exposure and amusement.”
The Damages? A Big Bucket of Numbers
In a move that feels more like a blockbuster sequel, the plaintiffs want:
- $86 Billion in damages, allegedly tied to the fall in Dogecoin’s market value since May 2021.
- An extra tripling of that amount (hence the $258 Billion figure).
- A court ban on Musk and his companies from any Dogecoin promotion.
- An order to treat Dogecoin trading as “gambling” under federal and New York law.
And There’s a Hint of Public Ridicule
The complaint even cites bullet points from a “Saturday Night Live” sketch, where Musk played a fictional financial whiz and called Dogecoin a “hustle.” It adds that remarks from the likes of Warren Buffett and Bill Gates throw further shade on the cryptocurrency’s legitimacy.
How the Saga Started
- Dogecoin hit its peak of about 74 cents in May 2021.
- By June 2023, it was trading around 5.8 cents.
- In February 2021, Tesla bought the equivalent of $1.5 Billion in Bitcoin and briefly accepted it as car payment.
- After a series of Musk‑style antics, the price swooned—just as the complaint claims.
Who’s Responding?
Neither Tesla, SpaceX, nor Musk’s lawyer has waved a reply flag yet, and the attorney for John Johnson remains tight‑lipped about what evidence underpins the notion that Dogecoin was a worthless shill.
Case Details
Johnson v. Musk et al, U.S. District Court, Southern District of New York, No. 22-05037.
