The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of violating disclosure rules regarding his financial interest in Twitter. This was reported by NBC.

According to the commission, the concealment allowed Musk to purchase shares at an "artificially suppressed price," causing at least $150 million in damages to other shareholders.

The lawsuit pertains to events from early 2022 when Musk acquired 9.2% of Twitter's shares and later negotiated to buy the entire company for $44 billion. The SEC claims he crossed the 5% ownership threshold in March 2022 and was required to notify the regulator and the market by March 24. However, Musk only disclosed his stake in Twitter on April 4, after which the company’s share price surged by 27%.

The SEC asserts that during the period between the required disclosure date and the actual announcement, Musk continued to buy shares, spending over $500 million and gaining an advantage over the "unsuspecting public." As a result, he was able to acquire shares at a lower price, harming other shareholders.

The agency demands a jury trial and seeks to compel Musk to return the "illegally obtained profits" and pay a civil penalty. Representatives of the regulator declined to provide additional comments, referring to the text of the lawsuit.

Elon Musk's attorney, Alex Spiro, stated that the SEC's actions are a "sign of a lack of real evidence" and called the lawsuit a "fiction" and a "result of a years-long campaign of harassment." Musk himself also reacted to the lawsuit on the social network X (formerly Twitter).

"A completely broken organization. They are wasting their time on such nonsense while so many real crimes go unpunished," the businessman stated.

https://twitter.com/elonmusk/status/1879322286291054653

The current SEC chair, Gary Gensler, known for his tough stance on cryptocurrency companies, filed the lawsuit against Musk just days before his resignation.

His term ends on January 20, 2025, the day Donald Trump assumes the presidency of the United States again. Gensler has repeatedly referred to the crypto industry as the "wild west" and has filed lawsuits against major players, including Binance.

After the inauguration, Trump plans to appoint Paul Atkins, a cryptocurrency supporter, as the new head of the SEC. The financial sector has reacted positively to this appointment, anticipating reforms in the area of crypto regulation.

Musk in Government

The situation surrounding Musk and the SEC is complicated by the upcoming inauguration of Donald Trump, who will once again take office as President of the United States on January 20, 2025. In November 2024, Trump announced Musk's appointment as head of the new Department of Government Efficiency.

Trump likened the billionaire's appointment to the Manhattan Project, which developed the atomic bomb. Experts note that Musk's new role in Trump's administration could significantly enhance his influence over federal agencies and yield substantial benefits for his business interests.

According to the Independent, the businessman spends "almost every day" with Trump at his residence in Florida and participates in discussions with world leaders. For example, the President of Serbia reported that Musk was present during their conversation with Trump.

Earlier, Spot reported on rumors regarding a potential sale of TikTok to Elon Musk.