Musk Knocks SEC Over Settlement Offer in Probe: What’s Next for Him and the Agency?

Musk Knocks SEC Over Settlement Offer in Ongoing Probe

Tech mogul Elon Musk criticized the Securities and Exchange Commission (SEC) on Thursday regarding a settlement offer related to the agency’s investigation of his 2022 acquisition of Twitter, now known as X. In a letter shared on X, Musk’s attorney, Alex Spiro, disclosed the SEC's ultimatum: 48 hours to accept a monetary settlement or face multiple charges.

Allegations Against the SEC

In his letter to SEC Chair Gary Gensler, Spiro described the SEC's actions as a decades-long harassment campaign against Mr. Musk and his affiliated entities. He demanded clarity on who instigated these actions, speculating whether it was Gensler himself or higher government officials.

The Context of the Probe

• The SEC began its investigation in April 2022, focusing on Musk’s initial purchase of Twitter stock.
• Following a lengthy legal battle, a federal judge ordered Musk to testify, which he initially refused.
• Despite agreeing to a deposition in May, Musk missed another in September due to business commitments in Florida.

Previous SEC Encounters

This isn't Musk's first run-in with the SEC; he reached a prior settlement in 2018 concerning social media posts about Tesla. After his appeal against the settlement's restrictions was declined by the Supreme Court, this new investigation adds another layer to his complicated relationship with regulatory authorities.

A Broader Implication

Moreover, Spiro pointed out that the SEC has reopened its investigation into Musk's brain chip venture, Neuralink. Musk, a significant contributor to the political landscape, remains a pivotal figure, engaging with the new administration and potentially influencing broader economic policies.