SEC sued for hiding Tesla stock ownership and paying only $150 million! Musk angrily said: real crimes are not being dealt with, SEC is completely incompetent.

The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk on 1/14, accusing him of failing to disclose his 5% ownership of Twitter to the relevant authorities within the statutory deadline. The SEC also alleges that Musk engaged in an acquisition of more Twitter stocks at a lower price before the market reacted, and believes that Musk may have improperly profited and paid at least $150 million less. Musk immediately responded on Twitter, saying, 'SEC is completely incompetent and doesn't care about real crimes.'

Elon Musk accused of hiding Twitter stock, paying $150 million less

Elon Musk acquired Twitter for $44 billion on April 25, 2022, and then renamed it X. He then made extensive reforms, including firing many senior executives and a large number of employees, while also modifying the content review system, triggering reviews and controversies from regulatory agencies in multiple countries.

The indictment states that Musk began purchasing Twitter stocks in early 2022 and reached the threshold of owning more than 5% of the shares on March 24, 2022. However, he failed to submit the required disclosure report within the statutory deadline of 10 days and delayed it for 11 days, publicly announcing the news on April 4.

SEC sues Musk legal documents

The SEC stated that on the day the news broke, Twitter's stock price surged more than 27%. It also pointed out that Musk's delayed disclosure allowed him to purchase Twitter stock with the advantage of 'information asymmetry,' allegedly profiting improperly and underpaying by at least $150 million.

(X refused to comply with the court order and has been blocked by Brazil, Musk: Freedom of speech is the cornerstone of democracy)

SEC accuses Musk of incompetence

On 1/14, the SEC filed a lawsuit in federal court, seeking Musk to return improper gains and pay civil penalties. However, Musk did not buy it and then tweeted: 'The SEC is simply a completely failed government agency, spending time on such things, but not dealing with real crimes!' Musk's lawyer, Alex Spiro, described the lawsuit as 'quite absurd' and accused the SEC of 'harassing' Musk for a long time.

Musk angrily sprayed SEC on Twitter, the old account between Musk and SEC has not been settled, and a new account has been added again.

This is not Musk's first time in court with the SEC. As early as 2018, Musk was accused by the SEC of market manipulation for posting related posts such as Tesla's privatization, and ultimately paid a $20 million fine.

Musk's privatization post for Tesla

This case has once again triggered external attention to the SEC and the enmity between Musk, especially on the eve of the inauguration of the President-elect of the United States, Donald Trump, and the departure of the current President, Joe Biden, and the SEC Chairman, Gary Gensler. This lawsuit has added a lot of topics.

This article was sued by the SEC for concealing Twitter's equity and paying less than $150 million! Musk angrily sprayed: The real crime is not taken care of, and the SEC is completely incompetent. It first appeared in Chain News ABMedia.