An investigation has been launched into Dogecoin (DOGE) supporter Elon Musk’s purchase of about 9 percent stake in the social media platform before attempting to buy Twitter for a record $44 billion price. Musk is reportedly facing a Federal Trade Commission (FTC) investigation into whether he violated Federal investment disclosure rules. Here are the details…
Review of Dogecoin advocate Musk
The feds warned Musk’s 1976 antitrust provision Hart- He examines whether he made a mistake under the Scott-Rodino Law. The law applies to active investors who buy large shares in a company. As we have also reported as Kriptokoin.com, Musk, who started to buy Twitter shares on January 31, announced his stake in the company in a file he made on April 4, in a document that first classified him as a passive investor.
The billionaire recast the statement a day later to reflect that he is an active investor after speaking publicly with Twitter’s board of directors about possible changes to the company. Citing sources on the matter, The Information reported that the FTC wanted to review communications between Musk and Twitter’s board of directors and consider whether it had purchased shares that planned to play an active role in the company’s operations.
DOGE price cut
According to the report, the famous CEO could face a fine if the FTC investigation finds that Musk violated the Hart-Scott-Rodino Act. However, the fine for each day that Musk does not follow the guidelines will be a maximum of $46,517 – a meager amount for the richest individual in the world. Musk’s initial announcement of his Twitter stock purchases drew scrutiny from regulatory experts earlier this month – some saying he missed the US Securities and Exchange Commission’s (SEC) reporting deadline by several weeks, as his stake in the company exceeded 5 percent.
Meanwhile, the meme coin Dogecoin (DOGE), which Musk consistently and openly supports, is changing hands at $0.13, down 0.6 percent. DOGE, which is in the eleventh place with its market value, is 80 percent below the record level of $ 0.73 it saw about a year ago.
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