Lawyers have warned Tesla Automotive CEO Ilan Musk that his unbridled Twitter activity could cause trouble for the US Securities and Exchange Commission.
to the Report Legal adviser Kevin Telegraph has warned Tesla CEO Ilan Musk that he may be targeted by the US Securities and Exchange Commission (SEC) because of his social media activities and public statements about Bitcoin.
Tesla announced in a form to the SEC on Monday, February 8, that it had purchased $ 1.5 billion in bitcoin and would soon accept the digital currency as a method of payment. Immediately after this news, the price of Bitcoin reached a new record, reaching $ 48,000.
Doug Davison, a member of Linklaters law firm and former head of the SEC executive branch, told the Telegraph:
Given the focus on senior executives’ tweets, bitcoin prices, and recent market turmoil, it’s no surprise that the SEC is asking questions about events at this point.
Confirming this, Vitor Constâncio, the former Deputy Governor of the European Central Bank, concluded that the SEC would enter the debate:
The timing of this investment has not been disclosed by Tesla. In December, Musk said that Tesla might buy bitcoin, after which he made many statements about his support for bitcoin. Bitcoin continued to rise in price and Tesla’s investment value grew. The SEC will get into that.
The SEC and the US Commodity Futures Trading Commission (CFTC) have the power to investigate if they suspect market manipulation.
Musk made a lot of noise on Twitter about Bitcoin and Dodge Coin (DOGE) on Twitter, which helped increase bitcoin-related activity on social media. After these events, the price of bitcoin rose sharply.
In late January, he posted a Bitcoin hashtag Musk on his Twitter account and tweeted:
There is almost no doubt that Tesla’s apparent encroachments on Bitcoin, with Musk tweets about the digital currency for the 46.5 million followers that have the potential to change the market, have contributed to the recent rise in its price.
With his latest tweet on Wednesday, he is still in the hot market for Dogecoin. Musk tweeted that he was buying the digital currency. Dogecoin grew 13 percent after the tweet.
Some Dogecoin for [پسرم] I bought a small X so it could be a fledgling hoodler.
Musk is no stranger to Twitter controversy; He has previously been accused of posting misinformation on Twitter about Covid 19 and closing one of its factories.
In another case, he pretended that the value of Tesla shares was too high, which led to a fall in its price. The SEC accused Musk of publishing “false and misleading tweets” and sued him for fraud. But the CEO of Tesla settled many cases with this regulator.