Elon Musk settles SEC lawsuit for only $1.5 million

CryptoWorld News reports that Elon Musk’s trust fund has agreed to pay $1.5 million to settle the U.S. Securities and Exchange Commission’s (SEC) lawsuit over his Twitter (now X) acquisition. The SEC initially accused Musk of disclosing his Twitter holdings 11 days late in 2022, using the opportunity to buy over $500 million worth of stock at a low price, causing sellers of the stock to lose at least $150 million. According to a joint filing submitted to a federal judge on Monday, to facilitate this settlement, the SEC took the rare procedural step of adding the “Musk Revocable Trust” used to buy the stock as a defendant. Under the proposed agreement, the trust does not admit any wrongdoing, Musk himself faces no personal penalties, and the SEC will fully withdraw its charges against him. Musk’s lawyer Alex Spiro responded, “They originally wanted $200 million, Elon refused to settle. In the end, he won, only a trust entity paid a small fine for being a few days late, and without admitting anything, the case is closed.”