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Elon Musk, the richest man on the planet, finds himself once again in the eye of the legal cyclone. The SEC, the American stock market watchdog, accuses him of serious violations in reporting his purchases of Twitter shares in early 2022. The billionaire is said to have saved millions by delaying his disclosures. A look back at this new battle that could shake the Musk empire.
SEC vs. Elon Musk: a delay that costs a lot
The latest chapter of the frictions between Elon Musk and the SEC revolves around a delay of eleven days. In March 2022, Musk surpasses 5% of shares held in Twitter (now X) but delays reporting it, violating the rules. This delay is said to have allowed him to continue to purchase shares at lower prices, thus saving more than 150 million dollars.
The complaint filed on January 14 details this strategy, described by the SEC as a “harmful maneuver to the public market”.
As soon as the news broke, Musk responded on X: “Totally dysfunctional organization. They waste their time on nonsense while so many crimes go unpunished.”
Some key figures:
- More than 500 million dollars spent on buying shares;
- A saving of 150 million attributed to the delayed reporting;
- A 27% increase in Twitter’s stock price on the day of the late declaration.
At the same time, the SEC is about to turn a tumultuous page in its history, marked by controversies over its action priorities. For his part, Musk continues to galvanize an army of allies, among tech moguls and crypto influencers, determined to redefine the rules of the financial game.
This case reignites the debate on regulation in the financial world, a particularly sensitive topic in the crypto sphere. While the crypto market is already under pressure, some, like Shibetoshi Nakamoto, mock the SEC’s determination:
“They are suing Musk for buying Twitter at a supposedly low price when he paid 44 billion, while experts valued it at 30 billion? Nothing makes sense.”
Others see in this case a show of strength from the SEC, but also a warning. With Musk playing the troublemaker, and crypto regulation in flux, the question is whether such litigation could hinder investments or, on the contrary, strengthen discipline.
For Musk, used to controversies, this trial is part of a series of confrontations. After renaming Twitter to X, cutting jobs in half, and relaxing moderation policies, he continues to be in the spotlight.
Critics abound, but Musk seems unperturbed, preferring to make this battle a spectacle, as is his habit.
Finally, attacking Musk is a bit like tickling a hurricane: there will be ripples. With the imminent departure of Gary Gensler, the future of regulators in the face of titans like Musk remains uncertain. To be continued…
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
