Keith Johnson filed a class action complaint against Elon Musk, SpaceX, and Tesla Inc., alleging the defendants are engaged in a pyramid scheme centered on the Dogecoin cryptocurrency. The complaint identifies Dogecoin as a fraudulent cryptocurrency that does not generate cashflow, pay interest or dividend, and does not provide any unique utility. The complaint references one of the co-creators of Dogecoin, Billy Markus, who “openly admitted he created the cryptocurrency in about two hours, and it relied 99.99% on the ‘greater fool theory.'”
The complaint details the history Elon Musk and Dogecoin have: “Defendant Musk is the self-appointed ‘Dogefather,’ ‘former CEO of Dogecoin,’ partner, developer, spokesperson, publicist, salesman, marketer, and promoter of Dogecoin, who assembled the “Doge Army” including his corporations and various billionaires, influencers, and celebrities to increase the price, market cap and trading volume of Dogecoin.” In the two years of Musk’s involvement with Dogecoin the market capitalization of the cryptocurrency grew from $250 million in April, 2019 to $93 billion in May 2021.
The complaint also references Musk’s myriad of Dogecoin related tweets which consequently had significant impacts on the price of Dogecoin; concluding, that Musk was certainly aware of the effect his actions had on Dogecoin.
The plaintiff seeks the following relief: an order certifying the action as a class action, an injunction preventing unlicensed professionals — including the defendants — from advertising Dogecoin, an order declaring the trading of Dogecoin constitutes gambling, and an award of $86 billion in class damages and $172 billion in treble damages.
The plaintiff is represented by Evan Spencer Law PLLC.