Michaela Alvez
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has given Elon Musk a 48-hour ultimatum to accept a settlement or face multiple charges.
Reports indicate that Elon Musk’s attorney, Alex Spiro, has sent a letter to the SEC in response to the agency’s settlement demand. The letter, however, provided little clarity on the specifics of the charges or the number of Musk’s companies that might be implicated.
However, in his letter, Spiro confirmed that the SEC had reopened its investigation into Elon Musk’s neurotechnology company, Neuralink, this week. Spiro also revealed that he had been subpoenaed by the SEC for testimony, and stated that the agency had threatened to send a process server if he did not comply.
In addition to scrutinizing Neuralink, the SEC is also reviewing the timing and disclosure of Musk’s acquisition of Twitter stock prior to his $44 billion purchase of the social media platform.
The SEC has been probing the Tesla CEO for failing to promptly disclose his 9.2% stake in Twitter. Musk only revealed his ownership on April 4, 2022, roughly ten days after surpassing the 5% disclosure threshold mandated by securities law.
Under the Hart-Scott-Rodino Act, individuals who acquire a 5% or greater stake in a public company are required to disclose the information within ten days. Musk had agreed to testify in the SEC’s investigation in May 2024 but did not comply with a deposition request, prompting the SEC to pursue sanctions in a San Francisco court.
Elon Musk and Crypto Enthusiasts React
The billionaire entrepreneur’s relationship with the SEC has been contentious for years, dating back to 2018 when the agency sued him for securities fraud following his tweet about potentially taking Tesla private. In an X post, Musk shared his lawyer’s letter writing “Oh Gary, how could you do this to me? 🥹” sarcastically.
Crypto advocate Chamath Palihapitiya weighed in on the issue by sharing Musk’s tweet, criticizing the SEC’s actions. “Why does the SEC think they can continue to waste government resources (i.e., our money) so uselessly?” Palihapitiya wrote.
John Deaton, a pro-XRP lawyer, added his perspective on the matter, raising concerns about how the SEC treats smaller businesses and entrepreneurs. He emphasized that if the agency targets the wealthiest individual in the world in this way, it’s troubling to consider how they might treat those with far fewer resources than Musk.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
