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SEC to investigate Elon Musk on Dogecoin tweets

SEC investigate Elon Musk Dogecoin

The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Tesla CEO Elon Musk’s tweets about the joke cryptocurrency Dogecoin, according to sources aware of the issue.

SEC investigates Elon  Musk on Dogecoin

Firstsquawk, a Global Financial Squawk Service specialized in financial markets wrote on Twitter, “SEC is said to investigate Tesla Chief Executive Musk for his tweets on Dogecoin.”

Musk’s frequent tweets about the meme coins have had a great effect on its price action, according to U.Today.

This is not the first time that Musk’s Twitter account has gotten him in trouble with the SEC. Previously, the agency charged the billionaire with securities fraud over his controversial “funding secured” tweet about taking Tesla private before settling with him in April 2019. In a “60 Minutes” interview, Musk clearly stated that he didn’t respect the SEC.

In December, the regulator went after XRP issuer Ripple Labs with its landmark lawsuit.

Dogecoin (DOGE) is down over eight percent on the news.

However, there is no official confirmation on these reports as of yet.

Since the start of February, the price of dogecoin has increased as Musk has led several retail traders who pump the coin as massively as possible. Musk has also tweeted that he would support top dogecoin holders selling most of their coins.

Musk prior tweets

“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue”, Musk said in a tweet.

Earlier this month, Musk started posting memes about dogecoin and even tweeted that he would buy some for his youngest child, X Æ A-12.

“Bought some Dogecoin for lil X, so he can be a toddler hodler.” Musk tweeted along with a video of his son.

Whereas, on Wednesday, Dogecoin escalated 25% in a day after a one-word tweet from Musk.

The SEC has attempted to regulate the budding crypto market, but it’s still not sure whether it has the authority. As for Musk, he has mostly overwhelmed the agency in the past. Details about the investigation remain unknown.

About the author

Polina Tikhonova

Polina Tikhonova from Kyiv is Insider Paper’s Editor/Writer. Besides editing pieces, Polina covers articles with a focus on World affairs and politics at Insider Paper. Polina holds a Bachelor’s Degree in Journalism. Her articles and news reports have been published by many newspapers, magazines, journals, blogs, and online media sources across the globe. Polina is fluent in English, German, Ukrainian, and Russian.

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