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The SEC’s high-stakes investigation into Twitter’s acquisition by Elon Musk is reportedly facing significant hurdles from the billionaire’s side. The agency has accused Musk of employing questionable tactics to impede the investigation, adding a layer of intrigue to the unfolding saga.
Following his acquisition of Twitter in October 2022, Elon Musk has been under the microscope of various US agencies. The SEC, in particular, launched a probe into the platform takeover, citing Musk’s delayed disclosure of his Twitter stake as a critical concern. The agency later escalated the matter by suing Musk and demanding his testimony in a hearing.
Elon Musk still refuses to testify before the SEC over his Twitter acquisition
In February, a judge ordered Musk to testify in the SEC’s probe. As per the court order, both sides have one week to decide the place of testimony. Otherwise, the court will decide for them. While the testimony was scheduled for last month, Musk still refuses to appear and answer to the SEC regarding his Twitter takeover, which also happened with a massive help from Jack Dorsey.
The agency alleges that Musk is trying to “misrepresent” the investigation and “continues to distort the true scope of this investigation – his only hope for establishing that the SEC is not seeking relevant evidence.”
Musk’s legal team previously claimed the subpoena was issued by a staff member appointed by the SEC’s Director of Enforcement. They also claimed the whole investigation is an “unbounded investigation into an allegedly days-late SEC filing.”
Elon Musk’s biography book helped the SEC with its investigation
The SEC has reportedly attempted to arrange a testimony session with Elon Musk since April 2023. However, the billionaire’s actions have consistently hindered progress, leading to delays in the investigation. The agency asserts that Musk’s complaints about the investigation’s duration are unfounded, as it was his delay tactics that prolonged the process.
Besides the late disclosure of Twitter’s stake, the SEC also accused Musk of securities fraud, violating Section 10(b) of the Securities Exchange Act. Much of the new evidence against Musk is allegedly coming from his biography book written by Walter Isaacson. As the SEC’s filing reads, “This book provides important new information relevant to the SEC’s investigation.”