In a recent court filing, it has been revealed that Elon Musk, the CEO of Tesla and SpaceX, has been ordered to testify in a US Securities and Exchange Commission (SEC) inquiry regarding his acquisition of social media platform Twitter, now known as X. Judge Laurel Beeler upheld the SEC’s authority in the matter, affirming that the subpoena aimed to gather relevant information for the investigation. According to the judge, “The court grants the SEC’s motion to enforce the subpoena: it seeks relevant information, and it is otherwise valid.” Now, Musk and the SEC must agree on a date and location for his testimony within a week.
This is not the first time Musk has been involved in legal action with the SEC. Last year, the regulatory body initiated legal proceedings against him for failing to comply with a subpoena that had been served since May. The SEC was investigating potential securities fraud related to Musk’s actions in 2022, specifically his stock purchases and accumulation of a stake in Twitter before the leveraged buyout. The SEC argued that it needed Musk’s testimony to obtain crucial information relevant to its legitimate and lawful investigation.
In response to the SEC’s subpoena, Musk criticized it as harassment and called for a comprehensive reform of regulatory agencies. He stated, “A comprehensive overhaul of [regulatory] agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain… can’t wait for this to happen.” Musk’s comments reflect his longstanding criticism of regulatory bodies, particularly their perceived misuse of power and lack of accountability.
Musk finalized the acquisition of Twitter in October 2022 for approximately $44 billion. Since then, he has introduced various features with the aim of reshaping the platform into a multifunctional “everything app.” While Musk has hinted at the launch of a peer-to-peer (P2P) payment system this year, it remains uncertain whether cryptocurrency will be involved in these developments. The potential integration of crypto into Twitter’s functionalities could have significant implications for both the platform and the broader cryptocurrency industry.
Elon Musk’s upcoming testimony in the SEC inquiry regarding his acquisition of Twitter highlights the ongoing scrutiny faced by high-profile individuals in the business world. The SEC’s investigation aims to determine whether there were any securities fraud committed in relation to Musk’s actions. Meanwhile, Musk continues to express his concerns about regulatory agencies, calling for comprehensive reforms and greater accountability. As the legal proceedings unfold, the outcome could have far-reaching implications for both Musk and the future of Twitter as a multifunctional platform.