Elon Musk Could Face SEC Investigation Over Tesla’s Bitcoin Buy, Lawyers Warn

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Elon Musk Could Face SEC Investigation Over Tesla’s Bitcoin Buy, Lawyers Warn

The U.S. Securities and Exchange Commission (SEC) could investigate Elon Musk over Tesla’s $1.5 billion bitcoin purchase, some legal experts have warned, including a former SEC enforcement officer. Given the timing of Tesla’s bitcoin purchase and Musk’s multiple tweets on the subject, some say that the SEC will look into the matter.

Elon Musk Could Face an SEC Probe

Regulators could probe Tesla CEO Elon Musk over his company’s bitcoin purchase, the Telegraph reported Tuesday. Last week, an SEC filing reveals that Tesla bought a substantial amount of bitcoin in January. “We invested an aggregate $1.50 billion in bitcoin … we expect to begin accepting bitcoin as a form of payment for our products in the near future,” the filing reads.

Doug Davison, a partner at Linklaters and a former branch chief of the SEC’s division of enforcement, explained:

It would not be surprising – given the focus on the chief executive’s tweets, bitcoin pricing and recent dramatic market moves – for the SEC to ask questions about the facts and circumstances here.

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