Tech billionaire Elon Musk has revealed that the Securities and Exchange Commission (SEC) is demanding a settlement as part of its ongoing investigation into his 2022 acquisition of X, formerly known as Twitter.
The investigation centers on whether Musk violated securities laws by failing to disclose his stock purchases within the legally mandated timeframe.
Musk’s attorney, Alex Spiro, released a letter on social media detailing the SEC’s ultimatum: agree to a fine or face multiple charges.
The SEC reportedly claimed its actions were directed by higher authorities, warning that charges would be filed if Musk refused to comply. Musk has publicly rejected the settlement demand.
According to the letter, Spiro himself was subpoenaed to testify but declined, and the SEC has also reopened an investigation into Neuralink, Musk’s brain-machine interface company.
Spiro’s letter strongly criticized the SEC, accusing it of engaging in 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, adding that Musk would not be intimidated by the commission’s actions.
The clash stems from Musk’s purchase of a 9% stake in Twitter in April 2022, prior to his $44 billion full acquisition of the platform later that year.
The SEC contends Musk violated securities laws by failing to disclose the stock purchase within the required 10-day window.
Following the acquisition, Musk rebranded Twitter as X, further cementing his role as one of the most influential figures in the tech world.
