SEC’s Gensler Threatens Elon Musk with Charges Unless He Settles in 48 Hours
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has made a settlement request to Elon Musk, warning him that he could be charged unless he pays within 48 hours. The SEC is reportedly preparing multiple charges, but the letter remains vague on specifics, such as the exact nature of the charges and how many of Musk’s companies are involved.
Recently, Musk’s attorney Alex Spiro received a subpoena from the U.S. Securities and Exchange Commission (SEC) and threatened to use a process server if he did not comply.
It is worth mentioning that the U.S. Securities and Exchange Commission (SEC) has been investigating Elon Musk’s delay in disclosing his 9.2% stake in Twitter. He did not disclose his shareholding until April 4, 2022, approximately ten days after exceeding the 5% disclosure threshold required by law.
Under the Hart-Scott-Rodino Act, anyone who acquires at least 5% of a public company must disclose it within ten days. In May 2024, Musk agreed to testify in the SEC’s investigation, but failed to comply with their deposition requirements, leading the SEC to seek sanctions from a San Francisco court.
Experts react to Gensler’s latest move
Lawyer John Deaton supports XRP reacted to the news, saying this is how the SEC treats the world’s richest man. He noted that without the resources that Elon Musk has, small businesses and entrepreneurs would likely be far worse off. Deaton drew attention to the fact that the SEC’s actions in the LBRY case demonstrated their aggressive tactics, threatening to bankrupt Jeremy Kauffman and LBRY even before the lawsuit was filed.
He also said that Ripple and CEO Brad Garlinghouse spent more than $150 million defending themselves in the case, which did not involve fraud but was not registered, and explained why most companies There are no resources to fight back.
