Tech Billionaire Elon Musk has revealed that the Securities and Exchange Commission (SEC) has issued a settlement demand in connection with its ongoing investigation into his 2022 acquisition of X (formerly Twitter).
LEADERSHIP reports that SEC was probing to know if Musk violated securities laws by failing to disclose his stock purchases on the social media platform within the required timeframe.
Attorney for Musk, Alex Spiro, shared a letter on social media outlining SEC’s demand that Musk agree to a fine or face multiple charges.
The SEC claimed that the demand was the result of a directive from higher-ups and warned that charges would be filed unless Musk complied. Musk has refused to acquiesce.
The letter further revealed that Spiro had been subpoenaed to testify but refused and that the SEC had reopened an investigation into Musk’s brain-machine interface company, Neuralink.
Spiro’s letter accused the commission of conducting a politically motivated campaign against Musk and his associates.
“We demand to know who directed these actions – whether it was you or the White House,” the letter stated, asserting that the SEC’s tactics would not intimidate Musk.
Musk’s recent clash with the SEC stemmed from his purchase of a 9% stake in Twitter in April 2022, ahead of his full acquisition of the company later that year.
The SEC contended that Musk had violated securities laws by failing to disclose the purchase within the required 10-day window.
Musk eventually acquired all of Twitter in a $44 billion deal, rebranding it as X shortly thereafter.