The US Securities and Exchange Commission (SEC) has given Elon Musk until Monday to respond to an offer to settle a probe into his $44 billion takeover of Twitter in 2022, according to a source familiar with the matter.
The development signals that the investigation may be nearing a conclusion. The SEC has been investigating whether Musk broke securities laws in 2022 when he bought stock in Twitter, which he subsequently renamed X, as well as statements and filings he made in relation to the deal.
Musk’s lawyer sent a letter to SEC Chair Gary Gensler on Thursday, saying the agency had given Musk 48 hours to agree to pay a penalty to settle the probe or face civil charges. The lawyer also demanded to know whether Gensler was personally behind the development.
The SEC has been probing Musk’s SEC filing disclosing his Twitter share purchases, which was at least 10 days late, and whether he intended to benefit from that delay, which some academics have estimated saved Musk over $140 million.
The agency has also been investigating Musk’s statements about his brain-chip startup Neuralink, which could be in line for a separate settlement or charges.
A settlement would be a common outcome for the SEC, which tries to resolve probes without going to court. However, if Musk fails to respond, the SEC may proceed with a “Wells” notification, a formal step in which the agency outlines potential charges and allows Musk to respond.
Musk’s lawyer, Alex Spiro, has accused the SEC of harassment and maintainng that the agency has been targeting the billionaire due to his political views and associations.
