The US SEC has launched an investigation into Twitter’s (now X) security vulnerabilities prior to Elon Musk’s takeover.
The United States Securities and Exchange Commission (SEC) is investigating a violation of Twitter’s data and privacy security that occurred before Tesla CEO Elon Musk’s takeover of the social media platform.
The SEC Starts Investigating Former Twitter Executives
Significantly, the regulator initiated an investigation into how the former management of the company, which was recently rebranded as the X app, managed security flaws that occurred in 2018. At the time, Twitter experienced multiple security vulnerabilities, including discovering a computer virus.
Specifically, the SEC is investigating whether the top executives at the time neglected to adequately inform shareholders about privacy issues. Former Twitter Chief Financial Officer Ned Segal and former Chief Technology Officer Parag Agrawal are among the executives in question. After Jack Dorsey’s departure in 2021, Agrawal became the company’s Chief Executive Officer (CEO).
The agency is also looking at whether the appropriate controls were implemented before the attack. Unfortunately, the breach exposed users’ confidential information, as the social media platform’s bug gave the perpetrators access to private information such as users’ email addresses.
In addition, the bug exposed the identities of the nations where user accounts are based. According to one source who requested anonymity, this action disclosed users’ identities to bad actors.
Furthermore, In the interim, there has been no mention of an enforcement action, particularly considering that none of these executives have been accused of wrongdoing. In addition, it is still being determined when the review will conclude.
SEC Also Investigates Elon Musk’s Twitter Purchase
Elon Musk acquired Twitter in 2016 after submitting a $44 billion proposal for the company. Upon assuming the position of CEO, he immediately embarked on a flurry of layoffs that ultimately affected both Agrawal and Segal.
Notably, Musk attempted to reverse his acquisition decision due to the controversies surrounding some security concerns currently under investigation.
In addition to the current investigation, the U.S. SEC is investigating Musk’s acquisition of the social media platform. The regulator wishes to determine whether the billionaire violated federal securities laws during his stock purchases and subsequent statements and filings relating to the transaction.
