The Securities and Exchange Commission has sued the billionaire over his alleged failure to immediately disclose ownership of Twitter stock
SpaceX and Tesla CEO Elon Musk has labeled the US Securities and Exchange Commission (SEC) “a totally broken organization” after it filed a lawsuit against him, linked to his purchase of Twitter (later re-branded as X).
The SEC, which is tasked with enforcing laws against market manipulation, sued Musk in a federal court in Washington on Tuesday, claiming that he had failed to disclose his ownership of more than 5% of Twitter stock in a timely fashion in early 2022, several months before buying the social media platform. The agency alleged that this allowed the tech billionaire to “underpay by at least $150 million for shares he purchased after his beneficial ownership report was due.”
On Wednesday, the tycoon responded to a post on X by an account under the name Satoshi Nakamoto – a reference to the unidentified creator of Bitcoin – who expressed surprise that “the SEC is suing Elon Musk for buying Twitter at ‘artificially low prices’ even though he bought it for $44 billion and industry analysts said it was worth more like $30 billion.”
The Securities and Exchange Commission is “a totally broken organization,” Musk, who has been tapped by US President-elect Donald Trump to head DOGE, a special advisory body tasked with identifying government inefficiency, wrote.
“They spend their time on sh*t like this when there are so many actual crimes that go unpunished,” he said.
Musk’s lawyer, Alex Spiro, insisted that his client has “done nothing wrong” and called the SEC’s lawsuit a “sham.” The action by the agency “is an admission… that they cannot bring an actual case” against the billionaire, he said in a statement.
The SEC’s “multi-year campaign of harassment” targeting Musk resulted “in the filing of a single-count ticky tack complaint… for an alleged administrative failure to file a single form – an offense that, even if proven, carries a nominal penalty,” Spiro stressed.
The head of the Securities and Exchange Commission, Gary Gensler, has said that he will step down from his post on January 20 when Trump is inaugurated. Last month, the president-elect nominated Paul Atkins, a cryptocurrency advocate and CEO of the Patomak Partners consultancy firm, to become the new chair of the SEC.
