{"id":7763,"date":"2025-01-15T10:18:57","date_gmt":"2025-01-15T10:18:57","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=7763"},"modified":"2025-01-15T10:18:57","modified_gmt":"2025-01-15T10:18:57","slug":"sec-sues-elon-musk-whats-going-on-and-impact-on-doge-price","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=7763","title":{"rendered":"SEC Sues Elon Musk: What\u2019s Going on And Impact on DOGE Price?"},"content":{"rendered":"
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The United States Securities and Exchange Commission (SEC) is suing Elon Musk, the tech billionaire and a Dogecoin supporter, for failing to file his Twitter timely (now X) acquisition disclosures. <\/span><\/p>\n

The SEC alleges that Musk bought Twitter, the then-public company, at \u201cartificially low prices\u201d due to this delay. The regulator claims Musk saved $150 million as a result. <\/span><\/p>\n

This lawsuit highlights the seemingly \u201cstrained\u201d relationship between the SEC and the SpaceX owner. Neutrals suggest this lawsuit could have ripple effects on Dogecoin (DOGE).<\/span><\/p>\n

The SEC Allegations Against DOGE\u2019s Elon Musk<\/span><\/strong><\/h2>\n

Specifically, the SEC claims Musk violated Section 13(d)(1) of the Securities Exchange Act of 1934 (\u201cExchange Act\u201d) and Rule 13d-1 by failing to disclose his Twitter shareholdings once they exceeded the 5% threshold.<\/span><\/p>\n

This law requires investors to file a report within ten days of acquiring more than 5% of a company\u2019s shares.<\/span><\/p>\n

As the SEC notes, Musk began accumulating Twitter\u2019s common stock in early 2022. By April of that year, he controlled over 5% of the outstanding common stock.<\/span><\/p>\n

In a lawsuit <\/span>filed<\/span><\/a> in the United States District Court of Columbia, the regulator alleges that Musk not only failed to file within the ten-day timeframe but took twice as long, disclosing his holdings 21 days later.<\/span><\/p>\n

Twitter\u2019s share prices surged by over 27% during this period after news of his acquisition became public on April 4, 2022. The SEC argues that Musk\u2019s failure to submit the required filing caused \u201ceconomic harm\u201d to other Twitter shareholders.<\/span><\/p>\n

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\u201cBecause Musk failed to timely disclose his beneficial ownership, he was able to make these purchases from the unsuspecting public at artificially low prices, which did not yet reflect the undisclosed material information of Musk\u2019s beneficial ownership of more than five percent of Twitter common stock and his investment purpose.\u201d<\/span><\/p>\n<\/blockquote>\n

The regulator now seeks to recover what they describe as \u201cunjust profits\u201d and impose further fines on Musk.<\/span><\/p>\n

Musk, however, views the SEC as a \u201cbroken\u201d organization, claiming they are focusing on him instead of addressing \u201cactual crimes.\u201d<\/span><\/p>\n

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Totally broken organization. <\/p>\n

They spend their time on shit like this when there are so many actual crimes that go unpunished.<\/p>\n

\u2014 Elon Musk (@elonmusk) January 15, 2025<\/a><\/p>\n<\/blockquote>\n