By Sam Boughedda
Tesla (NASDAQ:TSLA) CEO Elon Musk is being sued for $258 billion in a lawsuit that claims he, and his companies, Tesla and SpaceX, are "engaged in a crypto pyramid scheme by way of dogecoin cryptocurrency.”
Reports by the New York Post and Bloomberg state that Musk and his companies are named in the lawsuit, with the plaintiff named Keith Johnson.
Johnson reportedly wants $86 billion in damages, as well as triple damages of $172 billion from losses made trading Dogecoin since 2019, and an order blocking Musk and his companies from promoting Dogecoin.
Johnson is seeking to represent people who have lost money investing in cryptocurrency.
Dogecoin is currently trading at just under 5 cents, well below its all-time high of 74 cents.
The court filing reportedly states, "Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it."
“It’s simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price," it adds.
Musk has reportedly not yet responded to the lawsuit.