Elon Musk is being investigated over Twitter deal

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Image Source: Bitcoin News

Elon Musk is being investigated by the SEC concerning his $44 billion purchase of Twitter.

The details of the billionaire’s most recent ongoing legal disputes with the social network were made public on Thursday in a court file.

The filing said that he was under investigation, although it was unclear what the investigation was focused on.

In its court filing, Twitter asserts that it wants the “hidden ball” game to end.

Mr. Musk did not respond quickly to a request for comment.

To get Mr. Musk to complete the deal, Twitter sued him in July, claiming that the Tesla CEO’s legal team had used the “investigative privilege” to withhold crucial information. Furthermore, it asserted that Mr. Musk’s attorneys had failed to produce any of their correspondence with federal officials despite its months-long inquiries.

Late in September, Mr. Musk’s attorneys provided a “privilege log” listing the records that would be withheld.

The SEC, the American regulatory organization in charge of upholding the anti-market manipulation legislation, received email drafts on May 13 that were referenced in the log. In addition, the Federal Trade Commission, whose primary responsibilities include furthering antitrust laws and consumer protection, was also mentioned in the slide presentation.

The court application was filed the same day that the court granted a temporary stay to allow Mr. Musk and Twitter to complete the terms of their acquisition agreement.

Worries about the arrangement

Concerns have been voiced by the SEC regarding Elon Musk and his comments regarding the acquisition of Twitter.

The Securities and Exchange Commission (SEC) questioned Elon Musk in April on whether or not his 9% Twitter ownership disclosure was late and why it implied he intended to be a passive investor. Mr. Musk then updated the message to reflect his participation as an investor.

In a letter sent to Mr. Musk in June, the SEC asked if he had made the necessary changes to his public filing to indicate his wish to halt or cancel the purchase.

According to Mr. Musk’s attorney Alex Spiro, Twitter’s court petition was a “misdirection,” he told Reuters. He asserts that a federal investigation is looking into Twitter’s management rather than his client, Musk.

The filing comes as Mr. Musk’s prospective takeover of Twitter has been a months-long story. The billionaire initially proposed the acquisition but then withdrew his support. Later, for Mr. Musk to fulfill his pledge, Twitter sued him.

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Days before a trial to force the sale began, the billionaire’s side declared that he would move forward with the arrangement.

Elon Musk denies that he spoke with Putin

Elon Musk has denied allegations that he discussed preventing Russia’s invasion of Ukraine with Vladimir Putin before placing his suggestions in a Twitter poll.

Ian Bremmer, the head of the political risk consulting firm Eurasia Group, asserted that Elon Musk had directly briefed him about the conversation with Vladimir Putin.

Mr. Musk has recently refuted this, though.

Last week, the Tesla CEO requested votes from his 107.7 million fans on how to resolve the Ukrainian situation.

Read Also: Elon Musk, Twitter and the mysterious X app 

One of the suggestions was to hold elections in the areas of Ukraine that Russia asserts it has taken control of and occupied. In Moscow, his comments were well received. The multi-billionaire said, “Russia exits if that is the decision of the people.

President Putin has already recognized four Ukraine regions as part of Russia, despite claims of fraud from Kyiv and its Western backers. None of the four areas, however, are wholly ruled by Russia.

Additionally, after Moscow violently annexed Crimea in 2014, Mr. Musk argued for “formally” recognizing it as a part of Russia.

According to Mr. Musk, the Russian president was “willing to negotiate,” Mr. Bremmer wrote in a newsletter. But only if Ukraine consented to some permanent neutrality and Crimea remained under Russian rule. Additionally, Kyiv must accept that Russia has annexed Luhansk, Donetsk, Kherson, and Zaporizhzhia.

Mr. Bremmer claims that Mr. Putin declared that these goals would be accomplished “no matter what” and that he might launch a nuclear assault if Ukraine invaded Crimea. This information was provided to Mr. Bremmer by the CEO of SpaceX.

Mr. Musk, meanwhile, has since denied the allegations.