The Commission reportedly opened an investigation on Tesla CEO Elon Musk and brother Kimbal Musk under the suspicion of insider trading rules violation
United States Securities and Exchange Commission, US SEC seeks the regulations, oversees their proper maintenance, and looks for any violation by entities. The Commission has lately gone after many cryptocurrencies and related firms. SEC sued them, alleging the Ripple network that had not registered XRP as security has been one of the most talked-about issues.
Although the SEC has not only run after cryptocurrencies, it also investigates and legally charges traditional companies and related authorities, if needed. Take the recent investigation initiated by the SEC against the CEO of Tesla and business tycoon Elon Musk.
In November, the Commission summoned the car manufacturing company Tesla seeking financial information. This after-effect of suspicion emerged when Elon Musk asked on a Twitter poll about selling his own Tesla shares.
But the catch here is that the day before Elon tweeted the poll, his brother Kimbal Musk who also sits as among Tesla’s board of directors, sold his shares worth $108 million. The suspicion emerged because a few days after the poll, the CEO of Tesla sold his shares worth billions of dollars. And as expected, the Share price of Tesla started falling and fell up to 33%.
Kimbal Musk would have lost his money if not sold his shares before Elon’s tweet. It could be ignored if the selling was worth some amount, but the staggering amount of $108 million created doubt and made the SEC a suspect for some insider trading, which, according to the rulebook, is not legal.
SEC considers this investigation as to its routine work, which is meant to do while the CEO of Tesla sees this as harassment by the Commission. Last week he even made an allegation to the SEC of harassment with an endless and unrelenting investigation as an act of punishment for Musk being an outspoken critic of the US government.
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