SEC Chair Gary Gensler has warned Elon Musk of potential charges, demanding settlement within 48 hours as investigations into Neuralink intensify.
SEC Chair Gary Gensler has issued a settlement demand to Elon Musk, cautioning him that prospective charges may be levied if payment is not received within 48 hours.
The letter is reportedly vague about the specifics, such as the precise nature of the charges and the number of Musk’s companies involved, despite the fact that the Securities and Exchange Commission is reportedly preparing multiple charges.
The SEC is currently conducting an investigation into his brain-computer interface company, Neuralink. The most recent correspondence indicated that the SEC had “reopened” its investigation into Neuralink this week.
Additionally, it was disclosed that the SEC issued a subpoena to Musk’s counsel, Alex Spiro, with the threat of a process server if Musk failed to comply. In the midst of the confusion, Musk accessed his X handle and composed the following message: “The SEC is just another weaponized institution doing political dirty work.”
The Securities and Exchange Commission (SEC) has been conducting an inquiry into Elon Musk’s delay in disclosing his 9.2% stake in Twitter. He did not disclose his stake until April 4, 2022, approximately ten days after surpassing the 5% disclosure threshold mandated by law.
Anyone who acquires at least 5% of a public company is required to disclose the acquisition within ten days, as per the Hart-Scott-Rodino Act.
Musk consented to participate in the Securities and Exchange Commission’s (SEC) inquiry in May 2024; however, he neglected to fulfill the agency’s deposition request, which resulted in the SEC’s pursuit of sanctions in a San Francisco court.
Experts Respond to Gensler’s Most Recent Initiative
John Deaton, a lawyer who advocates for XRP, responded to the news by asserting that this is the manner in which the SEC treats the wealthiest individual in the world. He emphasized that small enterprises and entrepreneurs, who lack the resources that Elon Musk possesses, are likely to be treated even more harshly.
Deaton emphasized the SEC’s aggressive tactics in the LBRY case, which included threatening to impoverish Jeremy Kauffman and LBRY prior to filing a lawsuit.
He also stated that Ripple and CEO Brad Garlinghouse expended more than $150 million defending themselves in a case that did not involve fraud, but rather a failure to register. He also elucidated that the majority of companies lack the resources to counteract such an attack.
