Introduction
Elon Musk has not stayed quiet since the SEC (Securities and Exchange Commission) sued him. They claim he broke the rules when buying shares of Twitter (now called X) in 2022. The SEC says Musk waited too long to tell people he was buying the shares, which saved him $150 million.
Why Is the SEC Suing Musk?
The SEC has a rule: If you buy more than 5% of a company, you must tell everyone within 10 days. The SEC says Musk passed the 5% limit on March 14, 2022, but he didn’t share this until April 4. Because of this, Musk was able to buy more shares at a lower price. When the news finally came out, Twitter’s stock price increased by 27%. The SEC believes this delay hurt other investors. If they had known Musk was buying shares, they could have sold theirs for more money. Musk reportedly spent $500 million buying extra shares during this time.
Elon Musk’s Response
Musk did not hold back. On X, he called the SEC a “broken organization.” He criticized them for focusing on small issues while bigger crimes go unpunished.
Totally broken organization.
They spend their time on shit like this when there are so many actual crimes that go unpunished.
— Elon Musk (@elonmusk) January 15, 2025
Many people online supported Musk, saying the SEC is being unfair. One user said, “This feels like a last-minute attack before the administration changes.”
Why Now?
The timing of this lawsuit is interesting. Gary Gensler, the head of the SEC, is stepping down soon. On January 20, Donald Trump will become president, and Musk will start a new job helping the government become more efficient. These events make Musk’s legal fight even more talked about. Many wonder if politics is involved in the case.
Elon Musk’s Past Legal Battles
This is not the first time Musk has faced legal trouble. Last year, he was accused of manipulating the price of Dogecoin [DOGE]. Some people claimed his tweets made the price go up and down unfairly, but a judge dismissed the case. The court said there was no proof that Musk broke the law. Musk’s tweets have often caused big changes in cryptocurrency prices. Coins like Dogecoin, Shiba Inu [SHIB], and Pepe [PEPE] have seen big jumps after Musk mentioned them. However, no court has found him guilty of market manipulation.
What’s Next?
Musk’s fight with the SEC is far from over. While the SEC claims he broke the rules, Musk says they are wasting time. With new political leaders coming in, this case will likely get even more attention. For now, Musk remains focused on his work, his new government role, and defending himself.
