Outgoing Biden SEC Chair Threatens Elon Musk with Legal Action Over Twitter Deal
Securities and Exchange Commission (SEC) Chair Gary Gensler, who is soon to step down, has reportedly issued a threat of legal action against Tesla and SpaceX CEO Elon Musk if he does not comply with a financial demand related to his acquisition of Twitter (now X) in 2022.
Musk shared a letter from his attorney, Alex Spiro, on X, captioned, “Oh Gary, how could you do this to me?” The letter detailed that Musk must “agree within 48 hours to either accept a monetary payment or face charges on numerous counts.”
According to Spiro, the SEC’s demand pertains to “certain purchases, sales, and disclosures of Twitter shares,” which he characterized as part of an ongoing pattern of “more than six years of harassment” by the regulatory agency.
“We demand to know who directed these actions — whether it was you or the White House,” Spiro wrote, raising questions about potential political motivations behind the SEC’s actions.
In response, the SEC maintained its policy of confidentiality, telling The New York Post: “It is the policy of the SEC to conduct investigations on a confidential basis to preserve the integrity of its investigative process. The SEC therefore does not comment on the existence or nonexistence of a possible investigation.”
Elon Musk’s Rising Wealth Amid Government Critique
Musk’s financial ascent has been a topic of interest, with his net worth surging significantly in recent months. A CNN panel recently discussed how his wealth has grown since President-elect Donald Trump defeated Vice President Kamala Harris in the 2024 election.
The segment highlighted Musk’s appointment by Trump to a team, including entrepreneur Vivek Ramaswamy, tasked with addressing government inefficiency. Their goals include reducing federal spending, cutting waste, and potentially eliminating entire agencies to help tackle the $36.1 trillion national debt.
“Government waste over the last 20 years amounts to $2.7 trillion, with $236 billion in errors just last year,” analyst Harry Enten noted. “Correcting these issues is easier said than done, but the scale of waste is undeniable.”
Amid these developments, Musk’s personal fortune has skyrocketed. His net worth rose from $222 billion a year ago to $264 billion by Election Day and surged nearly $100 billion in just the last month.
“Tesla is the primary driver of his wealth,” the panel emphasized, with the company’s stock rising 49% over the past year—far outpacing the S&P 500’s 32% gain and Apple’s 28%.