Tesla CEO Elon Musk is under investigation by the SEC. Specifically because of the Dogecoin tweets, is it true?
Several sources indicate that the SEC could open a new file on Musk for several tweets published in recent weeks. Alluding to different cryptocurrencies.
SEC Now Going After Elon Musk Over Dogecoin
Possibly, this fact is what the SEC is monitoring and analyzing. If Elon Musk really influenced or “manipulated” in any way so that the value of the cryptocurrency increased in value.
While the rumor has yet to be confirmed, there is more than enough context to Elon Musk’s recent Twitter activity to justify the suspicion.
Elon Musk and his controversy on Twitter
Elon Musk is no stranger to controversy on Twitter. To recall, in 2018 the SEC sued Musk for fraud, accusing him of doing “Fraudulent and misleading tweets». But shortly after, it reached an agreement with the regulator.
The 51 characters of the tweet, caused a rise in Tesla shares on the stock market. In addition, a controversy over whether Musk should have used Twitter to make an announcement of that magnitude.
As a curious fact, in December 2018, Elon Musk stated in an interview: «I must be clear: I do not respect the SEC».
Opinion of legal advisors
Indeed, legal advisers have warned that Elon Musk could be under scrutiny from the United States Securities and Exchange Commission (SEC). Specifically, for their activity on social networks.
For his part, Doug Davison, partner at Linklaters and former head of the SEC’s Enforcement Division, stated:
«It would not be surprising, given the focus of Elon Musk’s tweets, if the SEC asked questions about the facts and circumstances.».
Similarly, Nouriel Roubini, a professor at New York University and a well-known critic of cryptocurrencies, publicly stated that the SEC should investigate Elon Musk, “and people like him», Due to possible market manipulation.
«First take an individual position on Bitcoin, it triggers its price. And, then he announces the investment from Tesla. It’s irresponsible and it’s market manipulation».
Therefore, Roubini stressed: «The SEC should investigate people who have an impact on the market, capable of manipulating the price of assets. Also, it is criminal behavior».
Finally, there is no doubt that Elon Musk’s influential tweets about cryptocurrencies contributed to the price increase. Also, to the mobilization of the markets.
So are the characters on Twitter enough to keep Musk in trouble? Leave us your opinion in the comment box.
I say goodbye with this phrase from José Luis Orihuela: «Twitter has become the nervous system of our societies. And you have to learn to use it».