Key Takeaways
- The SEC has filed a subpoena forcing Musk to testify in the ongoing Twitter probe.
- Investigators allege Musk may have concealed his 5% stake in X, potentially breaching securities laws.
- Non‑compliance could lead to contempt charges and further penalties for the billionaire.
Washington: The Securities and Exchange Commission (SEC) said on Thursday that it has filed an application forcing Elon Musk to testify in his Twitter probe.
“The Securities and Exchange Commission announced that it has filed an application seeking an order directing Elon Musk to comply with an investigative subpoena.
The subpoena calls for his appearance for testimony, and Musk failed to comply,” the SEC said in a statement.
The case relates to an ongoing investigation by the SEC regarding potential violations of various provisions of the federal securities laws in connection with Musk’s 2022 purchase of Twitter and statements and filings related to it.
The SEC, according to the statement, wants to acquire more information from Musk to conduct its lawful investigation.
It is claimed that Musk defrauded former X shareholders by not disclosing for too long that he has invested in X, formerly known as Twitter. Elon Musk was sued in April 2022 in Manhattan for alleged securities fraud following him failing to disclose he purchased a 5 percent stake in X within a US required time frame.
