On Tuesday, the U.S. Securities and Exchange Commission, under the leadership of Gary Gensler, brought charges against tech mogul Elon Musk. The commission claimed that Musk did not properly disclose the substantial amount of shares he owned in Twitter beforehand.
As per SEC guidelines, anyone owning more than 5% of a company’s shares is required to report this ownership within just 10 business days. However, Elon Musk reported his 9.2% stake in Twitter on April 4, 2022, which was later than the suggested March 24, 2022 date. Later in October 2022, Musk acquired Twitter for a staggering $44 billion and renamed it X.
In its lawsuit, the SEC sought to force Musk to pay a civil fine and disgorge undeserved profits.
Reactions from crypto community
Many people associated with the market have been discussing the SEC’s lawsuit against Musk on a particular platform. In response to this recent event, Billy Markus, also known as Shibetoshi Nakamoto on that platform, expressed his viewpoint that the lawsuit seems illogical.
He questioned why the SEC would sue Elon Musk for buying Twitter at “artificially low prices.”
At the specified moment, experts estimated Twitter’s value to be roughly $30 billion. Yet, Musk ended up purchasing the social media network for a staggering $44 billion instead.
As an analyst, I’m finding it puzzling that the SEC is taking legal action against Elon Musk over the purchase of Twitter at what they claim to be “artificially low prices.” Given that the transaction was for $44 billion and industry experts estimated its worth to be around $30 billion, I can’t help but wonder about the rationale behind this move.
— Shibetoshi Nakamoto (@BillyM2k) January 14, 2025
It’s been noted that some people in the community view the lawsuit as a potential threat to Dogecoin (DOGE), given Elon Musk’s strong backing of the meme currency. Typically, Musk’s involvement with DOGE tends to ignite fresh surges in its price.
The legal expert on cryptocurrency known as MetaLawMan remarked, “That’s a hit to the SEC Enforcement fund. It seems like the DOGE is exacting its revenge.” Notably, Elon Musk is slated to oversee the Department of Operational Government Efficiency (D.O.G.E) in the upcoming administration.
With a new U.S SEC Chairman set to take over soon, it remains unclear how the lawsuit will pan out.
Improvements on X
Intriguingly, the SEC lawsuit only came shortly after Musk announced new updates on X.
According to U.Today’s report, the main focus of this update is enhancing user experience through a system that ranks content based on account reputation. In simpler terms, accounts with a history of being blocked more frequently may have a limited reach and less impact overall.
Despite a recent legal dispute involving Elon Musk, the Dogecoin (DOGE) market is exhibiting positive trends. Over the past 24 hours, DOGE has experienced a growth of 4.14%, currently trading at $0.3597 according to CoinMarketCap data.
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2025-01-15 13:03