Elon Musk’s Twitter activity could cause him trouble with the SEC, according to some lawyers.
Legal advisers have warned that Tesla CEO Elon Musk could be targeted by the US Securities and Exchange Commission for his social media activities and public statements on Bitcoin
On Monday, February 8, Tesla announced in an SEC document that the company had purchased $ 1.5 billion worth of Bitcoin and would soon be accepting BTC payments. Shortly thereafter, the asset skyrocketed to a new all-time high of just over $ 48,000.
Doug Davison, a partner at Linklaters and former branch manager of the SEC’s criminal prosecution department, told the Telegraph :
„Given the content of the tweets, the Bitcoin price and the recent dramatic market movements, it would not be surprising if the SEC asked questions about the facts and circumstances.“
Former Vice President of the European Central Bank Vitor Constâncio agreed and said „the SEC will look into this“.
The SEC and the regulatory authority CFTC have the ability to investigate suspected market manipulation
Musk has repeatedly voiced on Twitter about Bitcoin and DOGE what has helped make Bitcoin activity on the social media platform increased to maximum values is.
Bitcoin rose 20 percent in late January after Musk mentioned #Bitcoin on his Twitter bio and tweeted, „In hindsight, it was inevitable“. In late December, he posted an explicit meme indicating that he was about to buy bitcoin.
There is little doubt that Tesla’s publicly known entry into Bitcoin contributed to this recent price surge. Musk’s tweets about crypto may also have moved the markets due to the high number of followers, namely 46.5 million.
He currently still supports Dogecoin, recently tweeted that he bought the asset. DOGE rose 13 percent after that particular tweet.
Musk has already sparked several Twitter controversies. He was previously accused of having published false information on the platform regarding Covid-19 and the closure of one of his factories.
He also once said that Tesla’s share price was too high, which led to a subsequent slide in the price. The SEC sued Musk for fraud and accused the Tesla boss of „false and misleading tweets“. But he soon came to an agreement with the regulator .