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On Tuesday, the United States Securities and Exchange Commission (SEC), led by Gary Gensler, filed a lawsuit against the tech billionaire. Elon Musk. The regulatory agency accused Musk of failing to disclose his significant stake in Twitter earlier.
Under an SEC rule, investors must report ownership greater than 5% within 10 calendar days. In Musk’s case, the SEC said he disclosed a 9.2% stake in Twitter on April 4, 2022, instead of March 24, 2022. Musk ultimately purchased Twitter for $44 billion in October 2022 and renamed it X.
In its lawsuit, the SEC sought to force Musk to pay a civil penalty and return undeserved profits.
Reactions from the crypto community
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Several market participants took to the X platform to share their thoughts on the SEC’s lawsuit against Musk. Commenting on the new development, Dogecoin co-founder Billy Markus, known on X as Shibetoshi Nakamoto, said the trial makes no sense.
He questioned why the SEC would sue Elon Musk for buying Twitter at “artificially low prices.”
He reiterated that industry analysts estimated Twitter was only worth about $30 billion at the time. However, Musk paid $44 billion for the social media platform.
Other community members believe the lawsuit is an attack on Dogecoin (DOGE). Recall that Musk strongly supports the meme coin and his activity with DOGE usually triggers new rallies.
MetaLawMan, Best Crypto Lawyer commented“Here’s the SEC enforcement budget. DOGE’s revenge.” It is worth noting that Elon Musk is also expected to lead the Department of Government Effectiveness (DOGE) in the next administration.
With the upcoming arrival of a new SEC chairman in the United States, it remains unclear how the trial will proceed.
Improvements on X
Oddly enough, the SEC lawsuit only came shortly after Musk announced new updates to X.
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As reported by U.Today, the update focuses on ranking content based on reputation to improve user experience. For example, accounts with higher blocking will have a much smaller reach, reducing their overall influence.
Despite the recent lawsuit against Musk, DOGE is showing upside. Over the past 24 hours, DOGE rose 4.14% to trade at $0.3597, according to data from CoinMarketCap.