The Biden administration’s Securities and Exchange Commission (SEC) has been investigating Elon Musk’s purchase of X (formerly known as Twitter) since 2022, and is now pursuing legal action against him.
Musk, who has been vocal in his criticism of the current administration, is facing increasing scrutiny, with many believing the government is using its power to target one of its most outspoken critics.
According to Reuters, the SEC announced on Friday that it plans to seek sanctions against Musk after he failed to attend a scheduled court-ordered testimony related to his $44 billion acquisition of X/Twitter.
The SEC claims that Musk informed them just three hours before his scheduled appearance on September 10 that he would not be attending. In response, the agency is preparing a motion to hold Musk in civil contempt.
Musk’s legal team, however, argues that these sanctions are both unnecessary and extreme, pointing out that his testimony has already been rescheduled for October 3.
They argue that the SEC’s move appears to be more about making an example of Musk than addressing any genuine legal concerns. The SEC has not provided further comments on the matter.
This latest development comes after a series of legal moves by the SEC. Last year, the agency issued a subpoena to Musk, demanding his presence in court to testify regarding his purchase of X/Twitter.
Musk did not attend, which many believed was a strategic decision to avoid what he saw as a legal trap.
The tension between Musk and the administration has been building since Musk’s high-profile acquisition of the social media platform. Shortly after the deal was finalized in 2022,
President Biden publicly indicated that the government would be keeping a close eye on Musk, reportedly saying, “There’s a lot of ways to get him.”
Critics of the SEC’s actions argue that this is part of a broader effort by the administration to clamp down on political opponents and influential figures like Musk.
They see the investigation and the threat of sanctions as politically motivated, with the goal of undermining one of the most powerful voices in tech and business.
As the October testimony date approaches, all eyes will be on the unfolding legal battle, which pits one of the world’s wealthiest individuals against a federal government agency.
WATCH:
BREAKING: The SEC will sanction Elon Musk in its Twitter acquisition probe
Biden right after Elon bought Twitter:
"There's a lot of ways [to get him]" pic.twitter.com/HrHH9mwNP6
— End Wokeness (@EndWokeness) September 20, 2024
