Dogecoin Founder Reacts to Lawsuit Labeling DOGE a Pyramid Scheme
The debate surrounding Dogecoin\'s legitimacy continues, with a recent lawsuit accusing Elon Musk of running a pyramid scheme by promoting the cryptocurrency. But how does Billy Marcus, the co-founder of the popular memecoin project Dogecoin (DOGE), react to these allegations? This article dives into the Dogecoin community\'s response and the legal battles surrounding DOGE.
The $258 Billion Lawsuit Against Elon Musk
The controversy stems from a lawsuit filed against Tesla exec Elon Musk for promoting the Banking on the same. An individual decided to label Dogecoin a pyramid scheme and accused Musk of engaging in it. These speculations led to a lawsuit against Musk. Investors who lost tens of thousands of dollars investing in the token faulted Musk for promoting it to his millions of followers on Twitter (now X). One Dogecoin investor filed a $258 billion lawsuit against Musk and Tesla in 2025, initially accusing the Tesla CEO and his company of engaging in a “Crypto pyramid. A Dogecoin investor has sued the Tesla and SpaceX boss, alleging that Elon Musk engaged in a pyramid scheme by promoting DOGE on Twitter and through his firms. The complaint noted how Musk allegedly used his pedestal as a billionaire to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.
The suit alleges that Elon Musk is being sued for $258bn (£209bn) over accusations he ran a pyramid scheme to promote a cryptocurrency called Dogecoin. The digital asset was launched. These investors claim that Elon Musk and Tesla were accused of artificially driving up Dogecoin’s price by over 36,000% before allowing it to crash, leaving them with significant losses. However, a judge recently weighed in, and a federal judge dismissed the $258 billion lawsuit. Elon Musk and his lawyers reportedly requested a United States judge dismiss a $258 billion lawsuit filed by investors who alleged he operated a pyramid scheme to promote Dogecoin.
Billy Marcus\'s Stance and the Future of Dogecoin
While Billy Marcus\'s specific reaction to this particular lawsuit might not be widely publicized, it\'s essential to consider the general sentiment from Dogecoin\'s co-founder. Marcus has consistently advocated for responsible investing and warned against treating Dogecoin as a "get rich quick" scheme. His views often emphasize the coin\'s origins as a lighthearted internet meme, contrasting with the high-stakes investment it has become for some.
The outcome of the dismissed lawsuit highlights the complexities of cryptocurrency regulation and the challenges of proving market manipulation. Despite the controversies, Dogecoin continues to be a prominent player in the crypto market, driven by its strong community and ongoing development.