SEC Presses Elon Musk with 48-Hour Ultimatum, Reopens Neuralink Investigation
- SEC reopens investigation into Neuralink
- Elon Musk faces 48-hour ultimatum from SEC
- Musk's lawyers accuse SEC of political persecution
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has issued a 48-hour ultimatum to Elon Musk, demanding he accept a settlement or face multiple charges. Musk's attorney, Alex Spiro, responded to the SEC, but the specific details of the charges and which Musk's companies would be involved in the charges are unclear. affected remain obscure.
JUST IN: SEC Chair Gary Gensler has issued a settlement demand to Elon Musk, threatening charges unless Musk paid within 48 hours.
Musk's lawyer Alex Spiro accuses the SEC of harassment and politically motivated actions. pic.twitter.com/vjOQGP0UAV
— Jacob King (@JacobKinge) December 13, 2024
Spiro confirmed that the SEC recently reopened its investigation into Musk's neurotechnology company Neuralink. He also revealed that the SEC had subpoenaed him for testimony, with the threat of sending a law enforcement officer if he did not cooperate.
In addition to Neuralink, the SEC is examining Musk’s acquisition of Twitter shares ahead of his $44 billion purchase of the platform. The agency is investigating whether Musk violated securities laws by failing to promptly disclose his 9,2% stake in Twitter, which he did not do until April 4, 2022, about 5 days after crossing the XNUMX% threshold requiring disclosure.
Under the Hart-Scott-Rodino Act, anyone who acquires a 5% or greater stake in a public company must disclose it within ten days. In May 2024, Musk agreed to testify in the SEC's investigation, but he declined to respond to a request to testify, prompting the SEC to seek sanctions in a San Francisco court.
Musk’s relationship with the SEC has been contentious since 2018, when the agency sued him for securities fraud following his tweet about the possibility of taking Tesla private. Musk recently shared his lawyer’s letter on X (formerly Twitter), sarcastically writing, “Oh Gary, how could you do this to me? 🥹.”
Crypto advocates have also weighed in. Chamath Palihapitiya criticized the SEC’s actions, asking, “Why does the SEC think it can continue to waste government resources (i.e. our money) in such a wasteful manner?” Pro-XRP attorney John Deaton expressed concern about how the SEC treats smaller companies and entrepreneurs, noting that if the agency targets the world’s wealthiest individual in this way, it’s worrying to imagine how it would treat those with less wealth than Musk.
The SEC is pressuring Musk to accept a financial settlement or face a range of charges, including reopening the Neuralink investigation. Musk and his lawyers remain defiant, accusing the SEC of improper harassment and questioning the motivations behind its actions.
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