On October 5th, the SEC (U.S. Securities and Exchange Commission) filed a matter in federal district court, examining statements and disclosures made by Elon Musk, while also alleging that he violated federal securities laws when acquiring the social media platform Twitter (now rebranded as “X”) last year.
Prior to this, the SEC had issued a subpoena to Elon Musk in May 2022, requiring the billionaire to appear for a deposition at the SEC’s San Francisco offices. Initially, Elon Musk agreed to comply with the request. However, just two days before the deadline, the CEO reversed course and rejected the SEC’s subpoena, refusing to cooperate with the SEC’s demand to appear for deposition.
Furthermore, Elon Musk also declined the SEC’s proposal for a deposition to be conducted in Texas in October or November.
The tension between Elon Musk and the regulatory agency is not new. Their discord stems from an incident in 2018 related to Musk’s tweets about taking his electric car company, Tesla, private and claiming that he had secured funding for such a move. Musk subsequently abandoned this plan three weeks later, resulting in his resignation as chairman of the company and a fine.
Since then, Elon Musk has consistently criticized the SEC, and the agency has launched multiple investigations into Musk over the past few years.
Notably, despite the legal troubles, Elon Musk continues to make ambitious plans for X. However, he has not clarified whether the payment features of Twitter are related to cryptocurrency, even though he previously hinted at payment options involving Dogecoin.
Elon Musk’s ongoing legal battles with the SEC highlight the complex relationship between high-profile figures in the tech industry and regulatory authorities, especially in the context of emerging technologies and financial markets.