The outgoing Chairman of the Securities and Exchange Commission, Gary Gensler, has reportedly issued a monetary settlement demand to billionaire Elon Musk, threatening legal action if he doesn’t comply.
Musk took to Twitter on Thursday with a letter detailing potential charges related to his 2022 acquisition of Twitter, now called X. In response to these developments, Musk tweeted a lighthearted message: “Oh Gary, how could you do this to me?”
Oh Gary, how could you do this to me? 🥹 pic.twitter.com/OoooQI77ZS
— Elon Musk (@elonmusk) December 12, 2024
In the letter addressed to Gensler, Musk’s attorney Alex Spiro explained that the SEC staff had demanded Musk agree within 48 hours to either make a financial settlement or face multiple charges. Spiro noted that this ultimatum seemed driven by higher-ups and warned that charges would soon follow if Musk did not comply. The letter also highlighted what Spiro described as years of harassment by the SEC towards Musk.
Further complicating matters is the SEC’s decision to reopen an investigation into Neuralink, one of Musk’s companies. According to Spiro, this move indicates that the Commission is more interested in targeting Musk and those connected with him than in seeking out the truth. He questioned whether these actions were directed by Gensler himself or possibly influenced by the White House.
CNN reported that any charges related to Musk’s Twitter purchase would trace back to spring 2022 when he bought 9% of Twitter shares before acquiring the entire company later that year for $44 billion. The SEC had previously queried why Musk failed to disclose his initial share purchases within ten days after surpassing a 5% ownership threshold—a requirement under securities law.
BREAKING: Head of the weaponized SEC Gary Gensler just threatened charges against Elon Musk within 48 hours
Nothings changed. Here’s JD Vance calling out Gary Gensler for weaponizing the SEC against Democrats political enemies including Trump
JD Vance threatens Gary Gensler… pic.twitter.com/TauAMQx5gs
— Wall Street Apes (@WallStreetApes) December 13, 2024
In an August interview with podcast host Lex Fridman, Musk criticized the SEC’s motivations, suggesting they are more interested in gaining career-boosting “trophies” than actual justice. He argued that lawyers at the SEC often use high-profile cases as stepping stones for better-paying jobs elsewhere.
This isn’t Musk’s first clash with the SEC; back in 2018, he faced legal trouble over tweets claiming he had secured funding to take Tesla private—a statement alleged by the SEC as misleading investors. As part of their settlement then, Musk stepped down from his role as chairman of Tesla’s board while paying a $20 million fine.
Elon Musk was told by the banks that he must concede to the SEC unlawfully or banks would cease to provide working capital and Tesla would have gone bankrupt immediately. pic.twitter.com/IG8H4UPlOb
— DogeDesigner (@cb_doge) December 13, 2024