Elon Musk faces new accusations from the US Securities and Exchange Commission (SEC) for allegedly unfairly disclosing information regarding his Twitter share purchases, leading to material losses.
SEC Allegations Against Elon Musk
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk for allegedly failing to disclose the acquisition of significant Twitter shares in 2022. The suit claims that Musk's omission enabled him to keep buying shares at artificially low prices, underpaying by at least $150 million.
Dogecoin Price Reaction to Musk's Comments
This is not the first lawsuit against Musk. In June 2022, investors accused him of insider trading with Dogecoin after his posts caused price surges. Musk responded to the latest SEC lawsuit by calling the regulator a 'totally broken organization,' which saw Dogecoin's price pump more than 4%.
Gensler's Departure and Potential Changes
The SEC's lawsuit coincides with the imminent departure of Chair Gary Gensler on January 20. This aligns with Donald Trump's inauguration, and Musk is expected to advise the president on increasing government financial efficiency. Trump has proposed a Department of Government Efficiency (DOGE) that Musk will co-lead with Vivek Ramaswamy.
The allegations against Elon Musk highlight ongoing tensions with the SEC. It marks an interesting period ahead as upcoming changes in influential positions could impact the financial and legal landscape.
