Lawyer and Entrepreneur Warns Tesla Boss He Could Get in Legal Trouble with the SEC Over Dogecoin
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- Here’s How Musk and His Companies Could Get in Trouble
- SEC addresses Musk about disclosure of his Twitter stake
Crypto-Law founder, John Deaton, tagged Elon Musk in a recent tweet, warning the billionaire that his frequent tweets promoting Dogecoin could land him in legal trouble, similar to Ripple and XRP tokens.
Here’s How Musk and His Companies Could Get in Trouble
John Deaton responded to a tweet from a man with the Twitter alias @JayBlessed901. The latter complained about the unfairness of SEC Chairman Gary Gensler’s long-running lawsuit against Ripple – a company that has more than 300 large financial institutions among clients outside the US, while Elon Musk with his tweets DOGE’s price run independently.
Not that the Twitter user was trying to get the SEC to sue Musk, however, Deaton found it possible and warned the owner of Tesla, SpaceX, Starlink and two smaller companies.
The lawyer believes that Gensler and the SEC may recognize Dogecoin as an investment contract with Musk and his companies.
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carefully @Elon Musk That’s why @garrigensler and the SEC can try and call #doge Coin an investment contract with you and your companies. https://t.co/MNWGHKr7Qa
— John E Deaton (@John Eaton1) 27 May 2022
However, it seems that the so-called Elon Musk effect on the price of Dogecoin is dying out. Earlier this week, Musk’s tweet was about to push DOGE up by more than 23 seconds as covered by U.Today.
In that tweet, he jokingly wrote “Dogecoin Trillionaire”, using the term “billionaire” as a derogatory.
SEC addresses Musk about disclosure of his Twitter stake
The SEC has published a letter addressed to Elon Musk, asking the regulator why the billionaire filed on Twitter later than ever to disclose about his 9.2 percent stake.
Musk sent in Schedule 13G form to announce his new holdings on April 4, instead of March 25, as was expected by the rules. An investor has ten days to disclose his holding in the company of more than 5 per cent.
The SEC said that after receiving a response from Musk, it “may have additional comments”.
