Tesla CEO Elon Musk is reportedly beneath SEC scrutiny once more, and this time, it’s over some alleged cryptocurrency manipulation, particularly Dogecoin.
Tesla, Elon Musk, and the SEC
Musk and the SEC have had a couple of run-ins with one another, and it was not often with a great final result.
Most famously, the SEC filed a lawsuit against Musk over his infamous “funding secured” comment relating to his failed try and take Tesla non-public again in 2018.
The Safety and Trade Fee (SEC) judged that Musk exaggerated when saying that the funding was “secured”:
Musk went on a marketing campaign towards the SEC, calling them names and claiming that they had been working for folks shorting the electrical automaker.
Tesla and Musk ended up reaching a settlement with the SEC.
As a part of the settlement, Musk agreed to step down from the function of Chairman of the board, and each Tesla and Musk needed to every pay $20 million fines.
The CEO presumably didn’t need Tesla to must pay for his situation with the SEC, and whereas he couldn’t instantly pay for Tesla’s a part of the advantageous, he determined to buy $20 million worth of shares from Tesla.
That approach, he form of not directly ended up paying for Tesla’s advantageous – although he additionally ended up with ~71,000 extra Tesla shares within the course of.
As we beforehand reported, Musk ended up actually making money from the settlement on account of Tesla’s inventory value surging final 12 months.
SEC now goes after Musk for Dogecoin
These days, Musk has been speaking rather a lot about cryptocurrency. Beforehand, the expertise didn’t appear to curiosity him a lot, however he now believes that it’s not less than “a bit higher” than fiat cash.
His curiosity in cryptocurrency culminated into Tesla buying $1.5 billion worth of bitcoins last month.
Whereas Tesla invested into bitcoins, Musk says that he’s an enormous fan of Dogecoin, which really began as a joke.
The above picture depicts Dogecoin’s brand on the moon, which is a reference to a meme usually used within the Dogecoin group in regards to the coin going “to the moon” as in growing in worth tremendously.
Musk has been tweeting about Dogecoin rather a lot this week, and whereas his tweets would possibly sound like jokes, they’ve been very influential and helped improve the worth of the coin by over 500% within the final month:
It began as a meme, however the cryptocurrency has now a market capitalization price over $6 billion.
When requested about why he likes Dogecoin, Musk merely answered that he “loves canine and memes.”
Tesla’s CEO additionally stated that he arrange Dogecoin mining rigs together with his youngsters final weekend.
Now, monetary newswire First Squawk experiences that the SEC is getting concerned and looking out into Musk for potential safety violations relating to Dogecoin:
Presumably, they might be him utilizing his influential Twitter account to govern the worth of the Dogecoin – much like what occurred with Tesla again in 2018.
That’s fairly loopy.
If that is correct, the US authorities is trying into Elon for tweeting a few meme cryptocurrrency.
That’s 2021 now.
To be honest, I perceive the way it appears on the floor for SEC. Dogecoin had a reasonably small market cap, and Elon’s affect can simply transfer it, and it appears prefer it did.
However did Elon or potential co-conspirators actually had a major Dogecoin place and tremendously benefited from these tweets?
One way or the other I doubt that one of many richest males on earth determined that it might be a great way to earn more money.
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