Lawyers warn Elon Musk’s Bitcoin pumping tweets could attract SEC’s ire

Legal advisers have warned that Tesla CEO Elon Musk may come under scrutiny by the US Security and Exchange Commission over his social media activity around Bitcoin.

On Monday, February 8th, Tesla announced in the SEC that it had purchased $ 1.5 billion worth of Bitcoin and would soon begin accepting BTC payments. Shortly thereafter, asset prices rose to an all-time high of just over $ 48,000.

Doug Davison, Partner at Linklaters and former head of the SEC’s enforcement division, told The Telegraph:

“It wouldn’t be surprising – given the focus on the CEO’s tweets, bitcoin pricing, and recent dramatic market moves – that the SEC is asking questions about facts and circumstances here,”

Former European Central Bank Vice President, Vitor Constancio, echoed the sentiment that “the Securities and Exchange Commission will look into this matter,”

The Securities and Exchange Commission and the Commodity Futures Trading Commission have the power to investigate if there is suspicion of market manipulation.

Musk has been very vocal on Twitter shilling Bitcoin and DOGE on numerous occasions which has contributed to the rise of Bitcoin’s activity on the social media platform to an all-time high. DOGE rose to all-time highs after Musk endorsed.

There is no doubt that Tesla’s public foray into Bitcoin, and Musk’s influential tweets to his 46.5 million followers, contributed to the recent price spike.

It’s still currently shipping Dogecoin with this latest tweet as of late February 10 stating that he’s buying the original. DOGE is up 13% after that particular tweet a few hours ago.

Musk is no stranger to the controversy on Twitter. He has previously been accused of spreading misinformation on the platform about Covid-19 and shutting down one of its factories.

In another incident I suggested That Tesla’s stock price was too high, which caused prices to drop later. The SEC sued Musk for fraud, accusing the Tesla boss of blogging “false and misleading tweets,” but he settled with the regulator soon after.

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