Elon Musk criticized the SEC after being sued for allegedly failing to disclose a substantial stake in X (formerly known as Twitter) before his acquisition of the platform.
What Happened: Elon Musk called the SEC on Wednesday on X a “totally broken organization” that is focusing on trivial cases and ignoring many genuine crimes that go unpunished.
The SEC alleged Musk’s omission to disclose his stake in Twitter allowed him to acquire the company at an artificially low price.
Dogecoin co-founder Billy Markus, known pseudonymously as Shibetoshi Nakamoto, mocked the SEC’s argument, pointing out that Musk paid $44 billion for Twitter, a price far above analysts’ valuation of $30 billion.
Chief economist and global strategist Peter Schiff echoed Musk’s sentiment.
Schiff noted that the SEC accused Musk of costing X shareholders $150 million due to a delayed ownership disclosure but argued that Musk ultimately generated billions for shareholders.
Schiff questioned what the SEC has done to genuinely benefit investors.
Why It Matters: Musk has faced increasing scrutiny from the SEC, particularly over his 2022 Twitter buyout.
His legal team has accused the agency of engaging in “years of harassment.”
In October 2024, the SEC escalated its stance by rejecting Musk’s settlement offer related to missed deposition obligations, opting instead to seek sanctions.
With Donald Trump's inauguration next week, Musk's role in the proposed Department of Government Efficiency (D.O.G.E.) could also draw attention.
The advisory commission aims to optimize resource use within government agencies.
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