Acquisition of Twitter: Elon Musk in the sights of the SEC!

Billionaire Elon Musk bought Twitter last year. An acquisition that continues to make a lot of noise. At the same time, the platform’s leaders are working strategically to position it in the crypto ecosystem.

Elon Musk suspected of violating securities laws

Elon Musk, the American billionaire entrepreneur, is currently under investigation. Investigations opened by the United States Securities and Exchange Commission (SEC). These are linked to the high-profile takeover of Twitter in 2022, now renamed X.

Investigation relates to possible violations of federal securities laws. Indeed, the SEC suspects the commission of an offense during the acquisition of Twitter and the formalities following the operation.

As part of these investigations, the SEC intends to collect information directly from the boss of Space X. This would be done via testimony deemed essential to shed light on this matter.

To this end, Elon Musk was summoned to appear in May 2023. A formality to which the latter refused to submit, raising objections. A situation which caused an escalation of tensions between the boss and the policeman of the American stock market.

SEC Investigating Elon Musk Over Twitter Acquisition

This is not a first for the American billionaire

This isn’t the first time Elon Musk has had run-ins with the SEC. Already in 2018, the billionaire had problems with the American financial regulator regarding the possibility of privatizing Tesla, his electric car company.

At the time, the contractor claimed to have secured funding for this. Statements made on Twitter which did not fail to make the SEC react, as it is now accustomed to doing.

For the typical case of the acquisition of Twitter, the institution accuses the billionaire of not having diligently clarified his interests in the operation. Transaction at the end of which he acquired a share “minority” the company.

These legal difficulties do not prevent Elon Musk from sharing his vision for Twitter. Speaking about his plans for the platform, he openly shared his ambition for Twitter’s user interface. Which suggests the possibility of a major overhaul in the future. A prospect which, if it materializes, would position the platform as a key player in the crypto market.

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