SEC’s Gensler Sues Elon Musk Over Delayed Twitter Stake Disclosure, Days Before Resignation

The U.S. Securities and Exchange Commission (SEC) sued Elon Musk on Tuesday (January 14), accusing him of waiting too long to disclose his 2022 purchase of a large stake in Twitter. Musk is accused of violating federal securities laws by waiting 11 days to reveal that he had acquired 5% of the company’s shares. The SEC’s complaint, filed in the U.S. District Court for the District of Columbia, accuses Musk of violating Section 13(d) of the Exchange Act and related rules.

SEC Sues Elon Musk Over Delayed Twitter Stake Disclosure

The SEC claims Elon Musk Elon Musk   Elon Musk is a tech expert, Entrepreneur and the person behind Tesla, SpaceX, and X. He is hailed as one of the leading influencers of crypto. His tweets, especially for Bitcoin (BTC) and Dogecoin (DOGE), can move the crypto market upside-down.   Recently, Musk flipped an idea of integrating crypto payments with X. This move will futher facilitate crypto payments and make the X a 'Super App'.   He often participates in crypto debates and wants to educate investors about blockchain technology and the benefits of DeFi. He also supports Trump's crypto prospectives and wants a clear policy for the same.   Quick Facts   Full name Elon Reeve Musk Birth 28-07-1971, Pretoria, South Africa Nationality American, South African, Canadian Education BA, BS from the University of Pennsylvania Known for Entrepreneur, Crypto Influencer   Elon Musk - Career Highlights & Events   2020 – Tesla gained interest and backed Bitcoin   2021 – Elon Musk’s Tesla purchases $1.5B worth of Bitcoin. Accepts it as a payment method   2022 – Boosts Dogecoin (DOGE) as its integration is tested in Tesla's commodities assets   2023 – Announced crypto payment attributes for X   2024 – Advocated for crypto-based financial infrastructure at global occasions.   NAsales@teslamotors.com EntrepreneurInvestorChief Executive Officer delayed disclosure allowed him to buy over $500 million worth of Twitter shares at artificially low prices. When Musk finally announced his purchases on April 4, 2022, Twitter’s share price jumped 27%.

Musk Accused of Profiting from Low-Priced Twitter Shares

The lawsuit seeks to force Musk to pay a civil fine and return profits he allegedly gained unfairly. Musk went on to purchase Twitter for $44 billion in October 2022, later rebranding the company as X. The SEC’s complaint claims that Musk’s failure to file a timely beneficial ownership report resulted in investors selling Twitter stock between March 25, 2022, and April 1, 2022, at artificially low prices. This, according to the SEC, caused those investors significant financial losses.

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Musk Responds to SEC Lawsuit, Calls Agency ‘Broken’

Musk has responded to the lawsuit on his platform, X (formerly Twitter), calling the SEC a “totally broken organization” and criticizing the agency for focusing on this issue while other more serious crimes go unpunished. Despite this ongoing legal battle, Musk has consistently avoided court appearances, delegating legal matters to his lawyers.

The SEC filed the lawsuit just days before gary gensler gary gensler Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC). His studies in finance and blockchain at MIT have helped him develop U.S. cryptocurrency regulations and policies. Quick Facts Full name Gary Scott Gensler Birth 18-10-1957, Baltimore, Maryland, United States Nationality American Education MBA from the University of Pennsylvania Marital status Married to Francesca Danieli (1986-2006) Net worth Estimated $100 million   Gensler has advocated for enhanced supervision of digital assets, seeking to regulate cryptocurrencies similar to securities. His work at the SEC has focused on safeguarding investors, regulating crypto exchanges, and establishing stablecoin policies.   Gary Gensler - Career Highlights 1997 – Became Assistant Secretary of the Treasury. 2009 – Led CFTC, regulating financial derivatives post-2008 crisis. 2018 – Taught blockchain and crypto at MIT. 2021 – Appointed SEC Chairman, focusing on crypto regulations. 2022 – Proposed stricter rules for crypto exchanges. 2023 – Took legal action against major crypto firms. 2024 – Advocated for stronger stablecoin and DeFi regulations.   Gary has collaborated with multiple lawmakers in formulating crypto policies. Even with disagreements with crypto investors regarding crypto policies, he continues to be a key player in the changing dynamic between regulatory frameworks and blockchain advancement.   Awards & Recognitions of Gary Gensler Year Institution  Description 2009 U.S. Treasury Financial Regulation Leader 2018 MIT Blockchain & Crypto Educator 2021 SEC SEC Chairman Overseeing Crypto Policies 2023 Bloomberg Most Influential Regulator in Crypto 2024 Forbes Top Policy Maker in Digital Assets   Useful Links to Connect With Gary Gensler Platform Link X (formerly Twitter) twitter.com/GaryGensler CFTC website Chairman Gary Gensler   Chairman the current SEC chair, steps down on January 20. His successor, Paul Atkins, nominated by Trump, is expected to review many of Gensler’s actions.

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