Elon Musk Faces New SEC Battle Over Twitter Share Purchases #

Elon Musk is embroiled in a fresh conflict with the Securities and Exchange Commission regarding his initial purchases of Twitter shares in 2022. Musk revealed that the agency is demanding he pay an undisclosed fine to settle charges related to these acquisitions.

A letter from Musk’s attorney to the SEC chairman states that the agency gave Musk a 48-hour ultimatum to pay the fine or face multiple charges. The letter claims this demand came from higher-ups in the agency and that charges were imminent unless Musk complied. Musk has refused to agree to the demand.

This latest clash adds to a history of tension between Musk and the SEC. The relationship has grown increasingly strained in recent years, with Musk challenging the agency’s authority to restrict his investor communications.

The letter also mentions that Musk’s attorney was subpoenaed to testify, which he declined to do. Additionally, it alleges that the SEC has reopened an investigation into Neuralink, another of Musk’s companies.

“This series of events makes clear that the commission is not motivated to seek the truth but instead is engaged in an improperly motivated campaign against Mr. Musk and the individuals and companies associated with him,” the letter states.

Previous conflicts between Musk and the SEC include a 2018 settlement over misleading tweets about taking Tesla private. This resulted in fines for both Musk and Tesla, and restrictions on Musk’s social media communications about the company.

The current dispute stems from Musk’s acquisition of Twitter shares in 2022. The SEC questioned why Musk did not disclose his purchases within the required timeframe after crossing the 5% ownership threshold.

Musk and the outgoing SEC chairman have also clashed over cryptocurrency regulation, with Musk being a vocal advocate and the SEC pushing for stricter oversight.

As the administration changes, a new SEC chair nominee has been put forward, potentially altering the landscape of this ongoing conflict.