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SEC Calls Elon Musk a Twitter Twit: Report

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Published on:
June 3, 2021

Securities and Exchange Commission says Tesla’s CEO tweeted without court-ordered company legal approval — something many crypto buyers would like to see with BTC-related tweets.

SEC Calls Elon Musk a Twitter Twit: Report

Table of Contents

The U.S. Securities and Exchange Commission has told Tesla the CEO Elon Musk twice violated a court-ordered policy that requires him to run any tweets by corporate lawyers before sending them into the Twitter-verse.

 

Until recently a crypto-world darling for his championship of Bitcoin and especially crypto-joke-turned top-10 Dogecoin, Musk’s star fell after a one-word Tweet that sent BTC plummeting last month.

 

 

The Wall Street Journal is reporting that the violations occurred in 2019 and 2020. The first was about solar roof production volumes and the second the company’s stock price.

 

Along with a $20 million fine, Musk was required to step down as Chairman of Tesla for three year after a fraud charge stemming from a 2018 marijuana-themed tweet about taking the company private with Saudi funding. 

 

In correspondence the Journal obtained through Freedom of Information Act, the SEC accused Musk of “repeated violations” of the oversight agreement, and said that “Tesla has abdicated the duties required of it by the court’s order.”

 

The company disagreed, saying the tweets in question did not fall under the terms of the agreement, and accused the agency of harassment.

 

He Let the Doges Out

Long followed obsessively in the cryptocurrency industry, Musk was widely praised after Tesla bought $1.5 billion in Bitcoin and announced that the company would start accepting the cryptocurrency in payment for its cars. 

 

Right up until May 16, when he was widely reviled for reversing the crypto-for-cars policy due to bitcoin’s awful environmental impact, followed by suggesting that Tesla was going to sell its holdings — a move that caused BTC to plummet and is widely blamed for worsening if not causing the current bear market.

 

Then there’s Dogecoin.

 

Currently the fifth-largest cryptocurrency by market capitalization, the Shiba Inu meme-themed cryptocurrency that was started as a joke in 2013 but has turned into something (allegedly) serious after Musk discovered it and started tweeting out memes including calling himself the “Dogefather” and buying his son DOGE to make him a “toddler hodler.”

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Author(s)

Leo Jakobson

I'm an NYC-based journalist covering crypto and business.

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