The claimed damage is more than 34 times the current market capitalization of Dogecoin of $ 7.5 billion and almost three times the market capitalization of ATH of $ 88.68 billion in mid-2021. Filed in New York District Court by IT lawyer Evan Spencer Law on Thursday, the class action lawsuit alleges that Musk "used his pedestal as the richest man in the world to manage and manipulate Dogecoin's pyramid scheme for profit, exposure and entertainment."
In the motion, prosecutor Keith Johnson, a U.S. citizen, alleges that Musk and his corporations were "unjustly enriched" by $ 86 billion as a result of wire fraud, gambling, fraudulent advertising, deceptive practices and other illegal behavior.
Johnson claims he and others lost approximately $ 86 billion in a class-action lawsuit between May 2021 and June 2022 and seeks that figure in monetary damages along with another $ 172 billion in damages and compensation.
In January, Musk announced that his electric vehicle company Tesla would accept Dogecoin as a means of payment. In May, he announced that payments by Dogecoin would also be accepted by his space research company SpaceX. The lawsuit also seeks a law declaring Dogecoin trading gambling within New York and alleges that Musk and his companies violated state and federal gambling laws.
The law also seeks to ban Musk and his companies, as well as all other unlicensed professionals, from advertising, marketing, or promoting Dogecoin in the future.
How did the crypto community react?
In short, the crypto community ridiculed the lawsuit.
Dogecoin creator Shibetoshi Nakamoto, whose tweet was cited in the lawsuit as supporting evidence, called the lawsuit "very stupid" on Twitter on Thursday, but admitted that cryptocurrency trading is not much different from gambling.
Rahul Sood, CEO and co-founder of Irreverent Labs, which develops blockchain games, called it a "stupid class action lawsuit." “It’s amazing that someone in the U.S. could have filed such a stupid class action lawsuit.
All these guys knew what they were getting into. Funny. ” Ron Coleman, a litigation partner and partner in the Dhillon Law Group with 196,000 followers on Twitter, responded to the tweet, noting that “anyone can say anything in a lawsuit”.