On June 16th local time, Elon Musk, the world's richest man, and his subsidiaries Tesla and SpaceX, a space exploration technology company, were sued by a US dog coin investor, seeking compensation of $258 billion (approximately 1.7 trillion yuan)
On June 16th local time, Elon Musk, the world's richest man, and his subsidiaries Tesla and SpaceX, a space exploration technology company, were sued by a US dog coin investor, seeking compensation of $258 billion (approximately 1.7 trillion yuan). The prosecutor claimed to have been deceived by the "cryptocurrency pyramid scam", and Musk and his company were participants and supporters of the "scam".
Elon Musk
According to reports, the dog coin investor named Keith Johnson filed a lawsuit in the Manhattan Federal Court on the 16th. He stated that Musk and the two companies directly "manipulated" the price of Dogcoin, deliberately "touting" Dogcoin on Twitter and raising its price, but now it has been plummeting.
The defendant (Musk and his company) falsely and fraudulently claimed that dog money is a legitimate investment, but it has no value at all, "Johnson said in the lawsuit. The defendant has realized since 2019 that Dogcoin has no value, but continues to promote Dogcoin to profit from it. Musk used his position as the world's richest man to manipulate Dogcoin's' pyramid scheme 'to gain profits, exposure, and entertainment
Johnson expressed his hope to prevent Musk and the company from promoting dog coins through legal channels, and to urge the court to declare that dog coin trading is actually a form of gambling in accordance with federal and New York laws. At present, Musk has not responded to the lawsuit, and legal advisors from Tesla and SpaceX have not responded.
Johnson stated that in this class action lawsuit, he will represent all investors who have lost money in the dogcoin transaction since April 2019 and demand compensation of $86 billion from the defendant - approximately equivalent to the market value of dogcoin that has fallen since May last year, plus twice the compensation of $172 billion.
According to reports, the price of dog coins has dropped by about 67% this year, and the trading price on the 16th was slightly below 6 cents, far from the peak of 74 cents last year. According to the complaint, the selling of dog coins began when Musk appeared on the US variety show "Saturday Night Live" last May. At that time, Musk called dog coins "a scam" on the program.
Musk promotes dog coins on Twitter
Since then, Musk has launched a "rescue" campaign for Dogcoin on Twitter, announcing that SpaceX will bring Dogcoin to the moon. In March of this year, he also stated that he would not sell Dogcoin, Bitcoin, etc., even though their value had evaporated by billions of dollars.
According to reports, Dogcoin is a cryptocurrency. In 2013, two software engineers Marcus and Palmer invented this digital currency (Dogecoin) using the popular internet dog emoticon package Doge as a logo, originally used to satirize Bitcoin. Initially, Dogcoin had no value and was mainly used as a reward currency for the American social media forum Reddit. Later on, it gradually became popular and its value was also elevated. Among them, Musk is constantly high-profile in supporting the cryptocurrency, and he has also referred to himself as the "father of dog coins".
Red Star News Reporter Ding Wen
Editor Guo Yu
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