Jun 17, 2022 13:00:00

Elon Musk is accused of 'running a rat lecture with Dogecoin', the amount of damages claim is over 30 trillion yen

by

Thomas Hawk

Dogecoin is a virtual currency with the motif of the Shiba Inu ' Doge ' that became a net meme, and after being developed as a Bitcoin parody in 2013, millionaire Elon Musk mentioned Dogecoin in 2021. As a result, the price jumped. About such Dogecoin, an American man said, 'Electric car maker Tesla, space development company SpaceX, and Mr. Musk who is the CEO of these companies ran a rat lecture with Dogecoin', 258 billion dollars (about 34 trillion) We have filed a lawsuit seeking compensation for damages (380 billion yen).

Elon Musk sued for $ 258 billion over alleged Dogecoin pyramid scheme | Reuters
https://www.reuters.com/legal/transactional/elon-musk-sued-258-billion-over-alleged-dogecoin-pyramid-scheme-2022-06-16/

Musk, Tesla, SpaceX Are Sued for Alleged Dogecoin Pyramid Scheme --Bloomberg
https://www.bloomberg.com/news/articles/2022-06-16/musk-tesla-spacex-are-sued-for-alleged-dogecoin-pyramid-scheme

In recent years, people who are not familiar with technology are actively investing in virtual currencies through exchanges, etc., but the price of virtual currencies can fluctuate significantly depending on the behavior of influential people and companies. In fact, if Mr. Musk, who is the world's richest man and has a positive attitude toward cryptocurrencies, mentions cryptocurrencies on Twitter, and Tesla changes the policy about Bitcoin, the price will be raised by itself. It is known to fluctuate significantly .

Bitcoin has fallen 30% from its temporary peak, and it has been pointed out that the market is being swayed by Elon Musk's remarks --GIGAZINE

Among them, Mr. Musk had a great influence on 'Dogecoin', which is also called meme coin or joke coin because it originated from net meme. Originally attracting attention in the Internet community in January 2021, it had risen sharply compared to before, but in February the price went up even further when Mr. Musk began mentioning Dogecoin.

Elon Musk mentions Shiba Inu's virtual currency 'Dogecoin' made with jokes, the price rises at a stretch --GIGAZINE

In April 2021, the market capitalization reached $ 42.7 billion (about 4.64 trillion yen at the rate at that time), and in May it was 1 Dogecoin = 74 cents (about 80 yen at the rate at that time). At the time of writing the article, the price has dropped to 1 Dogecoin = 5.6 cents (about 7.4 yen) .

The market capitalization of the virtual currency 'Dogecoin' from the net meme exceeds about 4.6 trillion yen, soaring about 6 times in just 4 days --GIGAZINE

Meanwhile, on June 16, 2022, Dogecoin investor Keith Johnson, who lives in the United States, said, 'Electric car maker Tesla, space development company SpaceX, and Musk who is the CEO of these companies are Dogecoin. It was reported that he had filed a complaint with the Federal District Court for the Southern District of New York.

A rat lecture is an organization that collects members by distributing the money collected from new members, which increases by a factor of two or more, to old members and promoting that they can get more returns than they paid. This method cannot be established unless the number of participants increases infinitely, and it is prohibited by the laws of each country because it has the property of eventually failing and damaging the members.

'The defendant knew that Dogecoin had no value since 2019, but the deal,' Johnson said in a complaint that he was 'an American citizen who was deceived by Dogecoin's rat lecture.' 'Mr. Musk used his position as the wealthiest man in the world to run and operate Dogecoin's rat lectures for profit, appeal and entertainment.' I am.

The complaint estimates that the market value of Dogecoin, which has fallen since May 2021, is $ 86 billion, and is seeking damages of $ 258 billion, which is three times that value.

Reuters asked Johnson's lawyer to comment on 'concrete evidence that Dogecoin is worthless and that the defendant runs a rat lecture,' but did not immediately respond. That. In addition, Mr. Tesla SpaceX Musk, who was sued, did not immediately return a comment.

In addition to compensation for damages, men are seeking a ban on the promotion of Dogecoin by Mr. Musk, Tesla, SpaceX, and the court declares that 'Dogecoin is gambling under federal and New York law.' I also want that.