Elon Musk and his company accused of illegal promotion of Dogecoin cryptocurrency

Elon Musk and his companies Tesla and SpaceX have been sued for $ 258 billion in connection with their promotion of the Dogecoin cryptocurrency, Bloomberg reports.

The plaintiff, Kate Johnson, claims that Musk and his companies created a fraudulent scheme to raise the value of Dogecoin.

«Defendants falsely claimed that the Dogecoin cryptocurrency was a reasonable investment, even though it had no value at all,» the lawsuit filed in Manhattan federal court says.

Johnson, who claims to have «lost money due to a crypto pyramid scheme created by defendants,» expects his lawsuit to go viral and be joined by others who have also lost money trading Dogecoin since April 2019.

In addition to damages, he is demanding that the court ban Musk and his companies from promoting Dogecoin.

The cryptocurrency, created in 2013 in honor of the Doge internet meme featuring a Shiba Inu dog, was trading at $ 0.057 today, having dropped 67% since the beginning of this year. Last year, the value of Dogecoin rose to $ 0.74.

Musk has previously stated that Tesla and SpaceX will sell their merchandise for Dogecoin. In January, he suggested that McDonald’s start accepting this cryptocurrency, tweeting that he would «eat a Happy Meal on TV if McDonald’s accepts Dogecoin.»

By the way, Musk was previously warned that sooner or later someone might go to court over Dogecoin.