Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE), is also becoming a favorable choice for users involved in illegal activities. Elliptic Connect has seen incidents around the world where DOGE token has been involved in many thefts, scams and Ponzi schemes.

DOGE was involved in 50 fraud events

According to the report, about 50 such events have come under their scanner so far. These incidents involved Dogecoin for millions of dollars. It reported the theft of approximately $119 million from DOGE in connection with a Turkish Ponzi scheme in 2021. A pseudonymous name “Turgut V” is believed to be the mastermind behind this incident.

According to reports, Turgut and his associates managed to influence approximately 1,500 DOGE holders to invest in their program. They promised investors a 100% return in just 40 days. It added that the fraudster convinced investors through Zoom calls and luxury meetings. The pseudonym managed to collect more than 350 million Dogecoin, which is estimated at around $119 million at the time.

Elliptic Connect mentioned that the launch of the Dogewallet has also resulted in hacking-related activity. However, it also highlighted the Plus Token Ponzi scheme. According to reports, the Chinese authorities have seized about 6 billion DOGE tokens. Meanwhile, approximately $4.2 billion in digital assets, including Bitcoin and Ethereum, were seized by police.

Elon Musk accused of promoting Dogecoin

Meanwhile, Dogefather claimed, Elon Musk was sued for about $258 billion by a DOGE investor. Tesla Chief has been accused of running a pyramid scheme to run the Dogecoin. The complaint mentions that Musk, Tesla Inc and SpaceX promoted the crypto in order to increase its price.

Musk has been a major promoter of the DOGE. Every time he makes a comment regarding the token, the price jumps up. The recent announcement of the Twitter deal made the crypto pump. The plaintiff wants to prevent musk and his companies from promoting Dogecoin to profit from the trade.

The Dogecoin is trading at an average price of $0.0641 at press time.

Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analyses. When he’s not writing, he plays video games, watches a thriller, or works out outside. Reach me at [email protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

This post Elon Musk Backed Dogecoin Accused of Multimillion Dollar Ponzi Schemes

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