Elon Musk, the richest man on the planet, once again finds himself in the eye of the legal storm. The SEC, the American stock market watchdog, accuses him of serious failures in the declaration of his purchases of Twitter shares in early 2022. The billionaire would have saved millions by delaying his declarations. A look back at this new battle which could shake the Musk empire.
SEC vs Elon Musk: a costly delay
The last chapter of friction between Elon Musk and the SEC is written around a delay of eleven days. In March 2022, Musk exceeds 5% of shares held at Twitter (henceforth X) but delays reporting it, breaking the rules. This delay would have allowed him to continue to buy stocks at lower pricessaving more than $150 million.
There complaint filed on January 14 The latter details this strategy, described by the SEC as “ maneuver detrimental to the public market “.
As soon as the news broke, Musk replied on X: “ Totally failing organization. They waste their time with stupidities while so many crimes go unpunished. »
Some key figures:
- More than $500 million spent buying stocks;
- A saving of 150 million attributed to the delay in declaration;
- A 27% increase in Twitter stock price on the day of the late reporting.
At the same time, the SEC is preparing to turn a turbulent page in its history, marked by controversies over its priorities for action. For his part, Musk continues to unite an army of alliesbetween tech moguls and crypto influencers, determined to redefine the rules of the financial game.
The crypto community questions the role of the regulator
This case revives the debate on regulation in the financial world, a particularly sensitive subject in the crypto sphere. While the crypto market is already under pressure, some, like Shibetoshi Nakamotomock the SEC's relentlessness:
“ They are suing Musk for buying Twitter at an allegedly low price when he paid 44 billion, while experts valued it at 30 billion? Nothing makes sense. »
Others see this affair as a show of force by the SEC, but also a warning. With Musk playing the troublemaker, and crypto regulations in full swing, the question is whether this type of dispute could slow down investments or, on the contrary, strengthen discipline.
For Musk, accustomed to controversies, this trial is part of a series of clashes. After renaming Twitter to X, cutting staff in half, and relaxing moderation policies, he continues to fuel the column.
Critics are pouring in, but Musk seems unfazedpreferring to make this battle a spectacle, as usual.
Finally, attacking Musk is a bit like tickling a hurricane: there will be turmoil. With the imminent departure of Gary Gensler, the future of regulators facing titans like Musk remains uncertain. To be continued…
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