Elon Musk Challenges SEC Over Fine Linked to Twitter Share Purchases

Elon Musk is once again at odds with the U.S. Securities and Exchange Commission (SEC), revealing that the agency has demanded he pay a fine related to his 2022 purchase of Twitter shares – or face multiple charges.

Musk, who disclosed the situation on his social platform X, posted a letter from his attorney Alex Spiro addressed to outgoing SEC Chairman Gary Gensler. The letter claims the SEC has given Musk 48 hours to accept an undisclosed fine over his failure to timely report his early Twitter share purchases or face legal action.

Mocking Gensler, Musk wrote, “Oh Gary, how could you do this to me?” The SEC, adhering to its policy, declined to comment on ongoing investigations.

The dispute centres on Musk’s acquisition of a 9% stake in Twitter (now X) in April 2022, before his eventual $44 billion takeover of the company. Under U.S. securities law, any investor exceeding a 5% ownership threshold must disclose their holdings within 10 days—a requirement Musk allegedly failed to meet.

Spiro’s letter accuses the SEC of acting under improper directives. “The commission is not motivated to seek the truth but instead is engaged in an improperly motivated campaign against Mr. Musk,” Spiro wrote, demanding clarification on whether these actions stem from Gensler or political influence, including the White House.

Musk and the SEC have a history of contentious interactions. In 2018, the agency fined Musk and Tesla $20 million each after determining Musk misled investors with his infamous “funding secured” tweet about taking Tesla private. The settlement required Musk to relinquish his role as Tesla chairman and seek pre-approval for tweets regarding significant company matters. Musk later said he accepted the settlement to secure Tesla’s financial stability at the time.

The latest SEC scrutiny comes amid broader tensions. The letter Musk shared claims that Spiro himself was subpoenaed to testify—a request he refused—and that the agency has reopened investigations into Neuralink, Musk’s neurotechnology venture.

Musk’s longstanding friction with Gensler also extends to cryptocurrency regulation. While Musk champions crypto as a decentralised financial tool, Gensler has pushed for tighter oversight, calling digital currencies “ripe with fraud, scams, and abuses.”

However, the regulatory landscape may soon shift. With President-elect Donald Trump set to replace Gensler, the SEC will likely see new leadership under Paul Atkins, a crypto advocate and co-chair of the Digital Chamber’s Token Alliance.

For Musk, the timing of this SEC battle may mark the final chapter in his dealings with a Gensler-led agency. As Spiro’s letter makes clear, Musk remains resolute: “This misguided campaign will not intimidate us.”