{"id":35970,"date":"2025-01-15T10:10:07","date_gmt":"2025-01-15T10:10:07","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=35970"},"modified":"2025-01-15T10:10:07","modified_gmt":"2025-01-15T10:10:07","slug":"sec-sues-elon-musk-over-alleged-failure-to-disclose-twitter-stake-in-2022","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=35970","title":{"rendered":"SEC Sues Elon Musk Over Alleged Failure To Disclose Twitter Stake In 2022"},"content":{"rendered":"

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to disclose his acquisition of a significant stake in Twitter, now renamed X, in early 2022.<\/span><\/p>\n

The SEC claims Musk\u2019s delayed disclosure enabled him to buy shares at lower prices, saving at least $150 million. This is according to the <\/span>SEC\u2019s 14 January 2025 filing<\/span><\/a> in a Washington DC federal court. <\/span><\/p>\n

Per the filing, Musk allegedly violated securities regulations by not filing a report within 10 days of acquiring more than 5% of Twitter\u2019s stock. <\/span><\/p>\n

EXPLORE:\u00a0<\/span>10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n

Musk Disclosed Twitter Stock 11 Days Past Deadline<\/span><\/h2>\n

The SEC contends Musk only disclosed his holdings on 4 April 2022, 11 days past the deadline. On the day of his disclosure, Twitter\u2019s stock price surged by over 27%.<\/span><\/p>\n

The lawsuit alleges Musk began purchasing Twitter stock in early 2022 .He exceeded the 5% ownership threshold by 14 March. Between 24 March and 4 April, Musk reportedly spent over $500 million on additional shares. Hence, he benefitted from artificially low prices due to the undisclosed information about his ownership. <\/span><\/p>\n

The SEC argues this failure to disclose deprived investors of critical information and allowed Musk to <\/span>unfairly profit<\/span> at their expense.<\/span><\/p>\n

In response to the lawsuit, Musk dismissed the SEC\u2019s actions as unwarranted. In a post on X dated January 15, he referred to the SEC as a \u201ctotally broken organization,\u201d accusing it of pursuing trivial matters while overlooking significant issues. <\/span><\/p>\n

Totally broken organization. <\/p>\n

They spend their time on shit like this when there are so many actual crimes that go unpunished.<\/p>\n

\u2014 Elon Musk (@elonmusk) January 15, 2025<\/a><\/p>\n\n

His attorney, Alex Spiro, characterized the lawsuit as part of a \u201cmulti-year campaign of harassment\u201d and claimed it lacked merit.<\/span><\/p>\n

The SEC\u2019s lawsuit comes at a politically charged moment<\/span>, as the<\/span> agency is poised for a leadership change with Chair Gary Gensler stepping down on January 20.<\/span> Musk is expected to advise incoming President Donald Trump on government efficiency.<\/span><\/p>\n

Musk, who acquired Twitter for $44 billion on April 25, 2022, made headlines for transforming the platform. He privatized the company, rebranded it as X, and overhauled its operations, including firing top executives and half the workforce. <\/span><\/p>\n

These changes, along with relaxed content moderation policies, have drawn scrutiny from regulators in regions like Europe and Australia.<\/span><\/p>\n

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SEC Faces Leadership Change<\/span><\/h2>\n

The SEC faces leadership changes as Gensler announced plans to step down on January 20, and Commissioner Jaime Liz\u00e1rraga is also set to leave before Trump\u2019s inauguration.<\/span><\/p>\n

Meanwhile, Donald Trump has\u00a0<\/span>selected Paul Atkins<\/span><\/a>, a crypto advocate and former SEC commissioner,\u00a0<\/span>as his\u00a0choice<\/span>\u00a0to lead the SEC.<\/span><\/p>\n

He\u00a0<\/span>has also<\/span>\u00a0<\/span>appointed\u00a0David Sachs<\/span><\/a>, a podcaster,\u00a0as the \u201cCrypto Czar\u201d in his cabinet. He\u00a0also\u00a0pledged to make America the \u201ccrypto capital of the world\u201d through initiatives like World Liberty\u2019s lending and borrowing platform.<\/span><\/p>\n

As reported, the SEC\u00a0<\/span>has<\/span>\u00a0<\/span>taken<\/span> a\u00a0tougher\u00a0stance against crypto firms in 2024.<\/span> More specifically, the regulator\u00a0<\/span>imposed nearly $4.7 billion<\/span><\/a> in enforcement actions against crypto companies, a 3,018% increase from 2023.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>Robinhood Settles With SEC For $45M Over Securities Law Violations<\/span><\/a><\/strong><\/p>\n

The post SEC Sues Elon Musk Over Alleged Failure To Disclose Twitter Stake In 2022<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to disclose his acquisition of a significant stake in Twitter, now renamed X, in early 2022. The SEC claims Musk\u2019s delayed disclosure enabled him to buy shares at lower prices, saving at least $150 million. This is […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-35970","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/35970"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35970"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/35970\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}