- Elon Musk has skipped crucial SEC testimony regarding his $44B Twitter deal.
- The SEC has pushed for sanctions, claiming violations of a court order.
- Musk’s lawyers have slammed the SEC for overreacting to the delay.
The U.S. Securities and Exchange Commission (SEC) is turning up the heat on Elon Musk, demanding legal and financial sanctions after the billionaire failed to show up for a critical testimony about his $44 billion takeover of Twitter, now known as X.ย
The SECโs is losing patience as it pushes Musk to comply with the investigation, which focuses on his actions related to the high-profile acquisition. The SEC now asks the court to hold him in civil contempt for violating a May 2024 court order.
SEC Wants Penalties After Elon Musk Skips Testimony
Court documents show Muskโs legal team tried to delay the meeting multiple times. The SEC claims he crossed a line by not securing written permission to reschedule. The agency also wants to recoup travel expenses and is pushing for any other penalties the court finds appropriate. This, the regulator claims, violates their agreement.
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Muskโs attorneys are firing back, calling the SECโs move โdrasticโ and accusing the agency of overreacting. They argue that sanctions are unnecessary since the SEC scheduled a new testimony for October 3 in Los Angeles.
Muskโs lawyer, Alex Spiro, dismissed the delay as insignificant in a long-running investigation and blamed Muskโs no-show on an emergency, promising heโll make it to the October session. This isnโt the only regulatory storm Musk is weathering.
Elon Musk’s X Faces Global Scrutiny
In August, the European Unionโs Irish Data Protection Commission sued X, accusing it of violating AI data rules and demanding it stop harvesting data from European users. Brazil’s Supreme Court recently upheld a ban on X, and in the UK, a prominent MP is considering calling Musk to testify on Xโs content moderation policies.
With multiple regulators tightening the screws, Muskโs handling of X is under intense global scrutiny, and the stakes are rising. The SECโs latest move could be just the beginning of the legal challenges piling up for the billionaire.
On the Flipside
- Elon Musk has a history of legal disputes with the SEC, including a 2018 settlement over his tweets about taking Tesla private.
- The SEC’s demand for in-person testimony could be seen as inflexible, especially if alternative options, such as virtual meetings, were not adequately considered.
Why This Matters
Elon Musk’s legal battles with the SEC and global regulators could hinder his plans to integrate crypto into X (formerly Twitter), impacting crypto adoption on mainstream platforms. This heightened scrutiny may reshape the crypto industry’s trajectory by curbing innovation tied to Musk’s influence.
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