Musk blamed the SEC and the Biden Administration for constant scrutiny into his Twitter acquisition while expressing his confusion and frustration in the matter.
On Thursday, October 5, the US Securities and Exchange Commission (SEC) sued Elon Musk in order to force him to testify about the acquisition of Twitter last year.
In a legal document filed in the Northern District of California, SEC lawyers have accused Elon Musk of non-compliance with a subpoena mandating his appearance for a September 15 testimony. This subpoena had been served to the CEO of Tesla in May 2023.
The SEC’s inquiry focuses on the potential securities fraud linked to the acquisition of Twitter shares in the same period when Musk was actively purchasing stock in the social media company. Elon Musk concluded his acquisition of Twitter, subsequently rebranded as X, in October 2022, in a transaction estimated at approximately $44 billion. In the current lawsuit, the attorneys representing the SEC noted:
“Musk’s ongoing refusal to comply with the SEC’s administrative subpoena is hindering and delaying the SEC staff’s investigation to determine whether violations of the federal securities laws have occurred. Accordingly, the SEC now asks the Court to compel Musk to appear for investigative testimony.”
The SEC’s legal team has made attempts to arrange a suitable time and location for a meeting with Elon Musk. They even extended an invitation to meet at the SEC’s office in Fort Worth, Texas, considered the closest to Musk’s current residence in the Austin area. The SEC said it arranged numerous dates for meetings scheduled in both October and November of this year.
However, despite these genuine efforts, Musk has consistently declined to participate in the requested testimony, as stated in the lawsuit.
Elon Musk and His Lawyers Respond to SEC Regarding Twitter Probe
Elon Musk’s attorney, Alex Spiro, issued a statement in response to the situation, stating that “the SEC has already interviewed Mr. Musk on numerous occasions in the course of this misguided investigation—it’s time to bring it to a close.”
Musk personally responded on the social media platform X while expressing confusion and frustration over the SEC’s legal action. Elon Musk expressed his surprise at the SEC’s investigation into his acquisition of Twitter/X and underscored his belief that he is consistently under scrutiny by various entities, including the Biden Administration and the SEC.
He reiterated his dedication to safeguarding free speech, advancing electric vehicle technology, and exploring space, expressing curiosity about the reasons behind the opposition he faces. Musk stated:
“Why is the SEC looking into my purchase of Twitter/X? Everyday it’s something different. One week it’s the Biden Administration, another week it’s the SEC, and another week it’s someone else. I’m literally just trying to protect free speech, build electric cars, and put humans on Mars. Why don’t they like me?”
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.