According to the latest information, Tesla CEO Elon Musk is currently under investigation by federal authorities. Authorities are examining the $44 billion Twitter purchase of the Dogecoin advocate. Federal authorities’ investigation is based on a court filing for Twitter that was released Oct.
Federal officials investigating Elon Musk over Twitter
Elon Musk announced his intention to acquire Twitter this summer. He then offered $44 billion in cash to buy the social media platform. Before this offer, Musk did not sit comfortably. Tesla CEO has become the largest shareholder by buying 9.1% of Twitter shares. He actually had to file the SEC before he bought the shares. But Musk did just that after he bought the shares. In this filing, he told the SEC that he would remain in a passive stance as a shareholder.
Later, Elon Musk stated that he would be an active investor and surprised everyone by reapplying for the acquisition. Now, the Dogecoin advocate is under scrutiny by federal authorities. However, Reuters says there is confusion as to why Musk is being investigated over the Twitter purchase. Musk’s lawyer, Alex Spiro, told Reuters that Twitter’s application was a “misdirection.” He also claimed that in reality Twitter is under investigation. Twitter has not made a statement about it so far.
The lawsuit between Twitter and Elon Musk continues
In the past months, Twitter has sued Dogecoin advocate Elon Musk. This was due to Musk’s surprise decision to withdraw from the purchase agreement. According to the lawsuit, the two parties were to meet in court in October. However, Musk is now starting to look warm to the idea of buying again. That’s why Judge Kathleen McCormick set a deadline of October 28 for Musk to complete the purchase deal.
Why is it important to Dogecoin investors?
When Musk was invited to join the Twitter Board this year, he proposed adding Dogecoin as a payment option for Twitter Blue subscriptions. That’s why the Dogecoin army is looking forward to the billionaire’s acquisition of the platform. When Musk announced his pivot recently, DOGE price reacted with a 10% increase. However, he thinks Musk will make it possible to tip with Dogecoin once he gets Twitter. Tipping with DOGE alongside Bitcoin and Ethereum has the potential to greatly increase the price of the asset.
In addition, a negative decision about Elon Musk is very important for DOGE. As we reported as Kriptokoin.com, DOGE has been the subject of Musk’s tweets since its release. With these shares, meme coin has signed an unprecedented rally in 2021. That’s why investors made a connection with the asset to the Tesla CEO. Almost every move by Musk right now has the potential to affect the DOGE price. Therefore, a negative decision can lead to a large drop in price.
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