DETROIT (AP) Regarding what he declared or did not disclose regarding his acquisitions of Twitter stock prior to purchasing the social media network in 2022, Elon Musk claims the Securities and Exchange Commission wants him to pay a penalty or face prosecution.
In a letter published by Musk on the now-defunct X platform, his attorney Alex Spiro informs Gary Gensler, the departing chairman of the SEC, that the commission’s request for a monetary settlement is a stupid plan that won’t scare Musk. Additionally, according to the letter, the commission restarted its inquiry into Musk’s computer-to-human brain interface firm, Neuralink, this week.
The letter has not been made public by the SEC. It wouldn’t confirm whether it had made Musk such a demand, nor would it comment on it.
An agency representative stated in an email on Friday that the SEC has a policy of conducting investigations in a secret manner in order to maintain the integrity of its investigative process.
The Associated Press also left messages Friday asking Spiro for comment.
Spiro claims in the letter that he is replying to requests from SEC employees regarding a multi-year probe into specific Twitter share purchases, transactions, and disclosures. Spiro is also insistent on knowing who ordered the actions.
For $44 billion, Musk purchased Twitter in October 2022. However, Musk was accused in a lawsuit brought by a Twitter investor in April 2022 of failing to disclose that he had acquired a minimum of 5% of the company by the legal deadline. Rather, the complaint claims that Musk did not reveal his Twitter holding until he had almost increased it to over 9%.
The lawsuit claims that in the two weeks prior to Musk admitting that he owned a sizable portion of Twitter, that tactic harmed regular investors who sold shares in the San Francisco-based business.
The value of Twitter’s shares eventually surged 27% from its April 1 close to about $50 by the conclusion of trading on April 4 as a result of Musk’s shareholding being revealed. The complaint claims that investors who had sold shares prior to Musk’s ownership of the firm becoming widely known were denied the chance to collect substantial profits because of that illegal delay.
Since 2018, Musk and the SEC have been involved in a protracted conflict. In response to Musk’s tweets claiming to have gathered the money required to take Tesla private, he and his electric vehicle firm, Tesla, agreed to pay $20 million in fines. Tesla is still a publicly traded corporation; such a change never occurred.
Musk attempted to revoke a portion of the settlement that mandated a Tesla lawyer monitor his posts regarding the company. He had argued that the clause infringed upon his right to free speech. The matter reached the Supreme Court, which dismissed Musk’s appeal without providing a statement.
Gensler, who was President Joe Biden’s nominee to head the SEC, declared last month that he will leave his position on January 20, the day Donald Trump takes office. Trump has declared his intention to appoint cryptocurrency supporter Paul Atkins as the SEC’s chair.
In an effort to overhaul the federal government, Trump appointed Musk as co-chair of the Department of Government Efficiency.
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