SEC Threatens Elon Musk with Charges

Outgoing SEC Chairman Gary Gensler has reportedly issued a monetary settlement demand to billionaire Elon Musk, threatening legal charges stemming from Musk’s 2022 purchase of Twitter, now known as X.

Musk shared the news on X, quipping, “Oh Gary, how could you do this to me?” alongside a letter from his attorney Alex Spiro.

Spiro’s letter to Gensler claimed the SEC demanded Musk agree to a settlement within 48 hours or face imminent charges. Spiro alleged the demand followed a “multi-year investigation and more than six years of harassment” by the SEC.

The attorney also accused the SEC of reopening its probe into Musk’s company Neuralink and called the agency’s actions a “misguided campaign” against Musk, questioning whether the pressure originated from Gensler or the White House.

The SEC’s charges reportedly relate to Musk’s disclosure of his 2022 Twitter stock purchases. Musk disclosed in April 2022 that he had acquired 9% of Twitter shares, but the SEC contends he failed to disclose the purchase within the required 10-day window after crossing the 5% threshold. Musk went on to purchase the rest of Twitter in the fall of 2022 for $44 billion.

This isn’t Musk’s first run-in with the SEC. In 2018, the agency sued Musk and Tesla over his tweet about having “funding secured” to take Tesla private. The case led to a $20 million fine and Musk stepping down as chairman of Tesla’s board, though he remained CEO.

In a previous interview, Musk criticized the SEC, claiming its lawyers are incentivized by career advancement rather than justice, describing their actions as seeking “trophies.”

While the SEC declined to comment on ongoing investigations, many speculate Musk’s issues with the agency could dissipate once Donald Trump takes office next month. Musk, a prominent Trump supporter, has expressed optimism about Trump’s pick for SEC chairman: cryptocurrency advocate Paul Atkins.