Dogecoin investors are accusing Elon Musk, the Tesla CEO and the second richest man in the world, of defrauding people using Dogecoin for a "pump-and-dump" scheme. The investors claim that Dogecoin qualifies as a security, which Musk denies. He has filed a motion to dismiss the lawsuit, which is seeking $258 billion in damages, arguing that his tweets about Dogecoin were harmless and did not defraud anyone. Musk's lawyers dismissed the lawsuit as a "fanciful work of fiction," and argued that it is lawful to tweet words of support for a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion. They added that the investors failed to provide proof of how Musk intended to deceive anyone or what risks he was hiding.

Musk has faced several lawsuits over his tweets, but last month, a San Francisco jury found him not liable for a tweet saying that he had arranged funds to privatize Tesla. Musk is known for his love of Dogecoin, one of the most popular meme-cryptocurrencies other than Shiba Inu. He was accused of jacking up the price of Dogecoin by nearly 36,000% over two years and then letting it fall rapidly. However, his lawyers deny any fraudulent activities and urge the court to dismiss the case.