The SEC is looking into allegations that Elon Musk broke the securities laws when he purchased Twitter, now known as X, in 2022.
In a recent development, billionaire Elon Musk is now the subject of a Securities and Exchange Commission (SEC) probe. The investigation centers on his 2022 purchase of the social media juggernaut Twitter, which has since changed its name to X.
The SEC is investigating if Musk broke any federal securities laws when he bought stocks and when he made related remarks and filings afterward.
Additionally, the SEC has stated that it intends to compel Musk to testify in order to obtain material for its legal investigation that it does not already have.
Musk was consequently served with a subpoena in May 2023, requiring him to appear at the SEC’s San Francisco headquarters. Musk initially agreed to appear but later voiced concerns and refused to abide by the SEC’s request.
The conflict between Musk and the oversight organization is not a brand-new occurrence. Their conflict began in 2018 when Musk tweeted about going private with his electric vehicle firm, Tesla, and claimed he had funds.
Musk bought Twitter last year after acquiring a sizable minority share. However, allegations have emerged that he did not properly and swiftly disclose this.
Furthermore, Musk’s lawyer Alex Spiro, has questioned the SEC’s continued inquiry, calling it foolish and claiming that Musk has already given enough testimony.
Musk has been fearless in discussing prospective intentions for Twitter despite the legal uncertainty. He has provided insights into his opinions about the platform’s user interface, suggesting that there may be plans for a substantial redesign in the near future.
In light of these developments, the SEC is unwavering in pursuing Musk’s information, stressing that the testimony sought is essential for its reputable and legal inquiry.
