An investor has filed a $258bn lawsuit against Elon Musk and his firms, alleging that he was "defrauded" through a Dogecoin "pyramid scheme."

Thursday, the investor Keith Johnson filed a lawsuit against the entrepreneur and his businesses Tesla and SpaceX in the federal court in Lower Manhattan.

Mr. Johnson is seeking $86 billion in damages in addition to $172 billion in tripled damages for losses experienced as a result of trading cryptocurrencies since 2019.

The world's wealthiest individual has frequently discussed Dogecoin on social media, making it a notable favorite topic.

On Thursday, the price of one Dogecoin was just below six cents, a far cry from its all-time high of 74 cents in May 2021.

"Dogecoin is neither a currency, an asset, or a stock, and it is not supported by gold, other precious metals, or anything. "It cannot be consumed, grown, or worn," the lawsuit alleges.

"Neither interest nor dividends are paid, and it has no utility distinct from other cryptocurrencies... A government or a commercial organization does not protect it.

"It is merely a scheme by which 'greater fools' are duped into purchasing the coin at a higher price."

Mr. Johnson would like to represent other Dogecoin investors who have lost money since April 2019.

He also seeks an injunction prohibiting Mr. Musk and the firms from advertising Dogecoin and declaring that trading Dogecoin constitutes illegal gambling under the US and New York law.

Mr. Musk, who has a net worth of $217 billion, stated in March that he would not sell bitcoin, Ethereum, or Dogecoin despite their values losing billions over the past few months.

The business owner has yet to reply to the case.