SEC Seeks Sanctions Against Elon Musk for Missing Testimony on Twitter Acquisition

SEC Claims Evasion
Musk’s Legal Defense
1. Escalating Tensions Between Musk and the SEC

The U.S. Securities and Exchange Commission (SEC) has requested sanctions against Elon Musk after he failed to appear for a court-ordered testimony regarding his $44 billion acquisition of Twitter, now known as X. Musk had been scheduled to testify under oath on September 10 but cited an "unavoidable emergency" related to a SpaceX launch in Florida, which he claimed required his personal presence for astronaut safety.

SEC Claims Evasion

The SEC accuses Musk of deliberately evading the testimony, noting that his notice of emergency was provided just three hours before the scheduled appearance. The agency is seeking to hold Musk in civil contempt and wants him to cover the costs incurred due to his absence, including travel expenses for three SEC attorneys. According to SEC lawyer Robin Andrews, Musk's failure to comply violates a previous court order.

Musk’s Legal Defense

Musk's attorney, Alex Spiro, argued that the emergency was genuine, and sanctions would be an overreaction. A new date for Musk's testimony has been set for October. Spiro maintained that Musk's presence at the SpaceX launch was essential and not an act of defiance against the court order.

Escalating Tensions Between Musk and the SEC

The SEC's move is the latest development in its ongoing tensions with Musk, dating back to 2018 when Musk tweeted about taking Tesla private at $420 per share, which led to a $20 million settlement. Additionally, the SEC has raised concerns about Musk's handling of Twitter stock acquisitions, alleging he failed to disclose critical information, putting other shareholders at a disadvantage.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

SEC Seeks Sanctions Against Elon Musk

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.