The crypto market remains in a hangover after a disastrous drop in value over the past six months. While many investors have to tacitly accept the high losses caused by risky and speculative investments, a disgruntled crypto investor in the US is now causing a stir with an explosive lawsuit.
None other than eccentric entrepreneur Elon Musk (biography from $20 at Amazon) is accused of misrepresenting the Dogecoin cryptocurrency as a serious investment, causing the coin’s value to skyrocket even in 2021. The South African native did it with the help of his two companies Tesla and SpaceX, which are said to be involved in this so-called pyramid scheme. At electric car manufacturer Tesla, for example, various fan items such as the curious Cyberwhistle can be purchased with the Dogecoin crypto.
The plaintiff, named Keith Johnson, is therefore asking a federal court in the New York borough of Manhattan for damages totaling US$258 billion, which, according to the current exchange rate, corresponds to approximately 245 billion euros. This astronomical sum must be awarded not only to him, but potentially to all affected Dogecoin investors in the form of a class action lawsuit. Musk and his companies should also be banned from continuing to promote cryptocurrency. The chances of this crypto lawsuit succeeding are probably rather low, with total assets currently close to US$214 billion, Elon Musk could not currently pay the required amount of damages out of his own pocket.
This article is published for informational purposes only and does not constitute investment advice.
The tech bug caught me at a young age, when I took my first steps into PCs in the Pentium II era. Since then, modding, overclocking, and meticulous care of my hardware has just been part of it for me. During my studies, I also developed a particular interest in mobile technologies, which can make stressful everyday student life much easier. After finding my love for creating web content while working in marketing, I set out as an editor at Notebookcheck to research the hottest topics in the fascinating world of technology. Outside of the office, I have a particular passion for motorsport and mountain biking.