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Elon Musk’s Tweets, Tesla BTC Buy Could Get SEC Probe

Elon Musk's Tweets, Tesla BTC Buy Could Get SEC Probe
  • Lawyers warn Elon Musk could face an SEC probe for pumping BTC price through his tweets.
  • Tesla revealed that it has purchased $1.5 billion worth of Bitcoin.
  • However, Tesla’s public invasion into BTC has contributed to this latest price spike, with Musk’s influential tweets.

Lawyers warned Elon Musk that he could face a probe by the US Securities and Exchange Commission (SEC) over his statements about Bitcoin.

Elon’s BTC Pumping Tweets Could Get Him in Trouble

Elon tweeted about Bitcoin on a number of occasions. This helped the Bitcoin price to reach its highest level. Because of this, Elon might get in trouble with the SEC. However, a lawyer said it is not clear if it’s because Tesla bought $1.5 billion worth of BTC.

Earlier this week, Tesla said that it has bought $1.5 billion worth of Bitcoin. The announcement led to speculation over whether many major corporates would do the same.

Prior to this, Tesla said in December 2020 they were looking into buying Bitcoin. Between December and now Elon has tweeted a lot about Bitcoin which affected its price. In late January, the Bitcoin price surged 20% after Musk added #Bitcoin to his Twitter bio.

Even more, in late December he posted an explicit meme suggesting he was strongly tempted to buy Bitcoin. However, Tesla’s public invasion into BTC has contributed to this latest price spike, with Musk’s influential tweets.

Nevertheless, Tesla filed the $1.5 billion BTC purchase with the SEC, so the latter should have had knowledge about the act. Also, if they wanted to act on it, they would have done so already.

Not Elon’s First Time

Other celebrities also posted multiple tweets backing Bitcoin. However, some in the crypto world aren’t impressed. More so, social media activity for Bitcoin is at an all-time high following a massive endorsement from Elon.

Joshua Frank, Co-Founder and CEO of crypto data provider The TIE, mentioned there have been 143,000 tweets over the past 24 hours from “non-bot accounts.”

BTC Tweet Volume Chart
BTC Tweet Volume Chart (Source: The Tie)

However, this is not the first time that Elon has encountered this threat. Last year he was accused of posting misinformation on the platform with regard to the “closing” of one of his factories.

Furthermore, Galaxy Digital CEO Mike Novogratz compared Elon’s comments with his notorious “funding secured” tweet in 2018. During this time, he asserted he was thinking about taking Tesla private at $420. Elon agreed to pay a fine and stepped down as Tesla chairman to settle with the US SEC over the matter.

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.