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Acquisition of Twitter: Elon Musk in the SEC's Crosshairs!

Fri 06 Oct 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Event

Billionaire Elon Musk purchased Twitter last year, a highly publicized acquisition that continues to make waves. Meanwhile, the platform’s leaders are strategically positioning it within the crypto ecosystem.

Elon Musk, the American billionaire in the SEC's crosshairs

Elon Musk Suspected of Securities Law Violation

Elon Musk, the American billionaire entrepreneur, is currently under investigation by the United States Securities and Exchange Commission (SEC). This investigation is related to the highly publicized acquisition of Twitter in 2022, which has since been renamed X.

The investigation revolves around potential violations of federal securities laws. The SEC suspects wrongdoing during the acquisition of Twitter and the subsequent formalities of the transaction.

As part of these investigations, the SEC intends to gather information directly from the head of SpaceX, which is considered essential to shed light on the matter.

To this end, Elon Musk was summoned to appear in May 2023. However, he refused to comply, raising objections. This situation has escalated tensions between the CEO and the American stock market regulator.

SEC Investigating Elon Musk Regarding Twitter Acquisition

Not the First Time for the American Billionaire

This is not the first time that Elon Musk has had run-ins with the SEC. In 2018, the billionaire already had a dispute with the American financial regulator regarding the possibility of privatizing Tesla, his electric car company.

At the time, the entrepreneur claimed to have secured funding for this move. These statements were made on Twitter and didn’t go unnoticed by the SEC, as has become customary.

In the case of the Twitter acquisition, the institution accuses the billionaire of not diligently disclosing his interests in the transaction. It was a transaction through which he acquired a “minority” stake in the company.

These legal challenges do not prevent Elon Musk from sharing his vision for Twitter. When talking about his plans for the platform, he openly expressed his ambition for Twitter’s user interface. This suggests the possibility of a significant overhaul in the future. If realized, this prospect would position the platform as a significant player in the crypto market.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.