Elon Musk Faces Class-Action Suit Over Alleged Dogecoin Shilling
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“Defendants Elon Musk, SpaceX, and Tesla Inc. are engaged in a crypto pyramid scheme (aka Ponzi scheme) by way of dogecoin cryptocurrency.”
Johnson argued that the meme token is “simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.”
The lawsuit alleged that the plaintiff was “defrauded out of money by defendants’ dogecoin crypto pyramid scheme.” Johnson claimed that Musk and his companies formed an illegal racketeering unit to pump the price of Dogecoin. The court document detailed:
“Defendants falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.”
It also added: “Since defendant Musk and his corporations SpaceX and Tesla Inc. began purchasing, developing, promoting, supporting, and operating dogecoin in 2019, [the] plaintiff and the class have lost approximately $86 billion in this crypto pyramid scheme.”
The plaintiff aims to represent a class of crypto investors that have lost money investing in Dogecoin since April 2019. Johnson is demanding $85 billion in damages and triple damages of $172 billion, bringing the total demand to $257 billion.
Johnson is also gunning for an order to block Musk and his companies from ever shilling DOGE again, arguing that trading DOGE has undertones of gambling under US and New York law.
Key Dogecoin Levels to Watch — June 17
Dogecoin has dropped to the base of a critical trend channel at $0.0500 with its slump this week. The meme token now faces the possibility of a sharp rebound to the top end of the channel.
However, with the prevailing market conditions and bearish dominance, this projection seems considerably unlikely, and a price pump could be resisted at the $0.0800 mark. Regardless, I do not expect to see a bearish continuation from this point until a little distance is placed between the price and the trendline.
Meanwhile, my resistance levels are $0.0600, $0.0700, and $0.0800, and my support levels are $0.0500, $0.0400, and $0.0300.
Total Market Capitalization: $890.5 billion
Dogecoin Market Capitalization: $7.49 billion
Dogecoin Dominance: 0.84%
Market Rank: #10
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