Michaela
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing the X owner and CEO of not revealing his acquisition of more than 5% of Twitter’s stock in early 2022.
In a January 14 filing, the lawsuit accuses Elon Musk of violating disclosure rules during his 2022 acquisition of Twitter shares, claiming he failed to disclose “he had acquired beneficial ownership” and underpaid by $150 million, thus breaching securities laws.
Musk allegedly failed to file a required report to report his Twitter holdings within the 10-day dΠ΅adline after surpassing a 5% stake in the company. He submitted the disclosure 11 days late on April 4, 2022.
βThat day, Twitterβs stock price increased more than 27% over its previous dayβs closing price,β the SEC stated in the filing.
The SEC’s lawsuit comes at a notable time, just six days before Chair Gary Gensler is scheduled to step down on January 20, coinciding with President-elect Donald Trump’s inauguration.
Related: Lagarde Exit Talk Sparks Uncertainty Over ECB Digital Euro Future
After acquiring Twitter for $44 billion, Musk rebranded the platform as X, dismissed top executives and half of its staff, and overhauled its misinformation policies. These changes led to regulatory scrutiny across multiple regions, including Europe and Australia.
The commission has been probing whether Musk or his associates were involved in securities fraud related to the acquisition, including an examination of Tesla stock sales used to fund the purchase.
In December 2024, Gensler issued Musk a 48-hour deadline to agree to a settlement or face Π° series of charges.
Related: CFTC Opens Door for National Trust Banks to Issue Stablecoins
In reaction to the lawsuit, Musk voiced his frustrations on X, labeling the SEC as a “totally broken organization.”
βThey spend their time on shit like this when there are so many actual crimes that go unpunished,β Musk wrote.
The SEC is reportedly pursuing a jury trial and demanding that Musk pay a civil penalty in addition to βdisgorgement of his unjust enrichment,β according to the lawsuit.
Read More
- Vitalik Buterin Calls Out Elon Musk Over Free Speech and User Bans on X
- SΠ΅C Must Justify Crypto Policy in Coinbase Legal Win
- Elon Muskβs Kekius Maximus Name Change Sparks Meme Coin Frenzy
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
