Emmanuel OchayiThe U.S. Securities and Exchange Commission (SEC) is intensifying its pursuit of Elon Musk, CEO of X, as it seeks his testimony regarding Twitter stock purchases before the $44 billion acquisition in October 2022.
After a series of contentious exchanges, the SEC now looks to compel Musk to testify, escalating their ongoing feud.
Launched in April 2022, the SEC’s investigation scrutinizes whether Musk violated federal securities laws during his acquisition of Twitter shares. It also delves into the adequacy of his disclosures and paperwork related to the deal.
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According to Bitcoin, Musk’s entanglement with the SEC began when he purchased a 9.2% stake in Twitter in March 2022, subsequently disclosing it in April. The SEC then queried him about this substantial stake, setting the stage for their ongoing investigation.
The latest development reveals that the SEC had subpoenaed Musk in May 2023, and he initially agreed to testify at their San Francisco office on September 15. However, just days before the scheduled appearance, Musk raised numerous objections, accusing the agency of harassment and objecting to the meeting location.
Despite the SEC’s willingness to reschedule and relocate the interview to Fort Worth, Texas, near Musk’s residence, he remained a no-show. Throughout the investigation, the SEC has demanded thousands of documents from Musk and other parties involved. According to their recent filing in San Francisco federal court on October 5, Musk has already testified twice in July 2022.
In response, Alex Spiro, an attorney for Musk, declared, “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”
This clash between Musk and the SEC is not unprecedented. In 2018, Musk faced a similar probe related to his self-driving car claims while at the helm of Tesla. Additionally, he has clashed with the U.S. Justice Department and the Biden administration on various occasions.
Commenting on X, Musk recently expressed his frustration with regulatory agencies, stating, “a comprehensive overhaul of these agencies is sorely needed.” He further proposed the creation of a commission to hold individuals accountable for abusing their regulatory power, adding, “can’t wait for this to happen.”
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