There is an important development regarding Elon Musk, who is on the agenda in the cryptocurrency world with his support for Dogecoin. SEC, which has recently set its sights on Binance and Coinbase, has targeted Elın Musk this time. Musk faces SEC investigation over Twitter acquisition.
SEC’s allegations and investigation regarding Dogecoin supporter Musk
Elon Musk, the billionaire behind X and a well-known proponent of Dogecoin (DOGE), is in the crosshairs. It is currently the subject of an investigation by the U.S. Securities and Exchange Commission (SEC). The regulator alleges that he failed to comply with a subpoena related to his acquisition of Twitter last year. Therefore, he took legal action against Musk.
The SEC alleges that Dogecoin supporter Musk failed to comply with a subpoena issued in May 2023 requesting his deposition regarding the Twitter acquisition. The investigation is primarily looking at a point during the purchase of Twitter shares. It looks to see if anyone is involved in securities fraud. Dogecoin supporter Musk’s purchase of Twitter had a bombshell effect. Later, a $44 billion deal in which the platform was rebranded as X attracted attention. Accordingly, the move is at the center of the SEC’s review. The regulator’s legal action aims to force Musk to testify as part of the ongoing investigation into the acquisition.
Mixed reactions from the crypto community
This development triggered a series of reactions within the crypto community. As Kriptokoin.com, Charles Hoskinson, the founder of Cardano (ADA), a cryptocurrency that also faces SEC scrutiny, gave a sarcastic response. “It’s definitely not political,” he commented. John Deaton, founder of CryptoLaw.us and one of XRP’s leading advocates in the ongoing securities litigation with Ripple, echoed Hoskinson’s view. Deaton is critical of the SEC’s enforcement actions. Accordingly, he argues that the regulatory body has lost its credibility. All of this is, of course, significant support for Dogecoin advocate Musk.
Using the status quo as a weapon
Deaton also points out other actions by the SEC, including Dogecoin supporter Musk. Accordingly, he claimed that the move was motivated by a desire to protect established figures in the US political environment. According to Deaton, “the SEC has become a weapon used to protect incumbents and the status quo.”
SEC’s investigation into Dogecoin supporter Elon Musk’s acquisition of Twitter attracts attention. Accordingly, as the investigation progresses, it will continue to attract the attention of key figures in the crypto space. There will also be different comments. The outcome of this investigation will probably not only concern Musk. It will also have implications for the broader regulatory environment surrounding digital assets.
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