Elon Musk is facing a $ 258 billion lawsuit alleging that the tech mogul and his high-profile companies "are engaged in a crypto-pyramid scheme using the Dogecoin cryptocurrency."

According to foreign media, the Telegraph reports, in the federal court documents presented in Lower Manhattan, the plaintiff, Keith Johnson, mentions Musk as well as his electric car company, Tesla, and the space tourism firm SpaceX.

Johnson, a U.S. citizen, is seeking compensation for losses caused by Dogecoin trading since 2019.

In this regard, he is seeking to represent a class of people who have lost money by investing in Dogecoin.

The lawsuit also calls for Musk, Tesla and SpaceX to stop promoting Dogecoin.

Musk, the richest man in the world, whose net worth was estimated by Forbes at $ 202.9 billion, has not responded to the lawsuit.

Earlier this year, Musk revealed that Tesla had begun accepting Dogecoin for transactions in its online store.

SpaceX is expected to follow suit in the near future.

The announcement made Dogecoin value rise in value.

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