Internet outraged as judge orders Elon Musk to testify in SEC probe of $44B Twitter takeover for 3rd time

WASHINGTON, DC: Elon Musk just can't seem to escape the long arm of federal regulators. The bombastic billionaire has been locked in an escalating battle with the Securities and Exchange Commission (SEC) ever since his messy takeover of X (formerly Twitter) in 2022.

Now a federal judge has ordered the Tesla and SpaceX CEO to testify under oath for a third time as part of the SEC's ongoing investigation into Musk's chaotic $44 billion acquisition of the social media platform, as per Associated Press.

SEC demands answers from Elon Musk over his $44 billion takeover in 2022

Magistrate Judge Laurel Beeler has ordered Musk to testify under oath for a third time in an ongoing SEC investigation into his tumultuous $44 billion acquisition of X and the events leading up to it.

The move came after a court hearing last December where Judge Beeler gave both sides a week to agree on a date and location for Musk’s testimony.

But in a new court order issued Saturday, February 10, in federal court in Northern California, Beeler shared that "the parties, at least initially, agreed to a date but ultimately the respondent did not appear and resists the subpoena on the grounds that the SEC’s investigation is baseless and harassing."

Musk has pushed back against the SEC’s requests, questioning if the agency has the authority to compel his testimony since the subpoena was issued by an SEC staff member rather than a constitutionally authorized officer.

But Judge Beeler asserted in her ruling that the court does have the power to enforce this subpoena, and Musk's testimony would "not unduly burdensome" given he had already testified twice before in this case.

Latest chapter in Elon Musk's combative history with the SEC

This marks the latest round in the ongoing battle between the SEC and Musk, one of the world’s richest men. The saga began back in 2018 when Musk infamously tweeted that he had secured funding to take Tesla Inc private at $420 a share.

That triggered an SEC lawsuit over the allegedly false and misleading tweets, resulting in Musk stepping down as Tesla chairman and paying $20 million in fines.

Since completing his acquisition of X in October of 2022 and taking the company private, Musk and the SEC have continued their adversarial back-and-forth. The SEC has been conducting a fact-finding investigation into Musk's conduct in the period before he took over X.

While no formal allegations have been made, the SEC seems focused on whether federal securities laws were violated regarding his initial bid and attempted withdrawal.

Internet reacts to news of Elon Musk's third testimony in SEC's investigation into X takeover

As news of Musk's third testimony in the SEC's investigation into his $44 billion X takeover spread, the internet erupted with varied reactions, providing a snapshot of the public sentiment.

One X user succinctly captured the prevailing concern, stating, "Concerning!" Meanwhile, another user added a touch of conspiracy, declaring, "They coming for him." Dissatisfaction with the legal proceedings was evident in a third user's critique, "The judge is not in his senses."

This sentiment was echoed by someone expressing skepticism towards the SEC's actions, noting, "The SEC hasn’t even determined whether any rules were broken. Back in the days, one had to have a good reason to investigate. Nowadays, one investigates to find a reason."

The controversy surrounding Musk's attempted withdrawal from the deal also surfaced, with a fifth user pondering, "The one they forced him to purchase when he tried to back out of it?"

In a notable show of support, a sixth user credited Musk with a broader impact, stating, "Elon saved the free speech."

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