SEC Chair Gary Gensler has issued a settlement demand to Elon Musk, warning him of potential charges unless payment is made within 48 hours. The Securities and Exchange Commission is reportedly preparing multiple charges, but the letter remains vague about the specifics, such as the exact nature of the charges and how many of Musk’s companies are involved.
Recently, Musk’s attorney, Alex Spiro, was subpoenaed by the SEC, with threats of a process server if he didn’t comply.
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
For the unversed, the SEC has been investigating Elon Musk for delaying the disclosure of his 9.2% stake in Twitter. He only revealed his stake on April 4, 2022, about ten days after surpassing the 5% disclosure threshold required by law.
According to the Hart-Scott-Rodino Act, anyone who acquires at least 5% of a public company must disclose it within ten days. In May 2024, Musk agreed to testify in the SEC’s investigation but failed to comply with their deposition request, leading the SEC to seek sanctions in a San Francisco court.
Experts React To Gensler’s Latest Action
Pro-XRP lawyer John Deaton reacted to the news, saying this is how the SEC treats the richest man in the world. He pointed out that small businesses and entrepreneurs, without the resources Elon Musk has, are likely treated even worse. Deaton brought to attention how the SEC’s actions in the LBRY case show their aggressive tactics, threatening to bankrupt Jeremy Kauffman and LBRY before even filing a lawsuit.
He also said that Ripple and CEO Brad Garlinghouse spent over $150 million defending themselves in a case that didn’t involve fraud, but a failure to register and explained how most companies don’t have the resources to fight back like that.
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