SEC Sues Elon Musk Over Twitter Stake Reporting

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to timely disclose his 5% ownership stake in Twitter (now X), which allowed him to save over $150 million by buying shares at lower prices. Musk reportedly delayed this disclosure by 11 days, which is against SEC rules that require reporting within 10 days. The lawsuit seeks civil penalties and the recovery of profits Musk allegedly gained unfairly, further intensifying Musk's ongoing conflict with the SEC, which he has previously criticized as dysfunctional. Musk's legal team has dismissed the allegations as harassment, labeling them an 'administrative failure.' The case has sparked varied reactions within the crypto community, with some questioning the SEC's motives and others suggesting it reflects broader regulatory challenges. This legal battle comes as Musk prepares for a significant role in an incoming administration, raising questions about the intertwining of corporate and political power.