Shockwaves in XRP Community as SEC Initiates New Lawsuit Against Elon Musk Over Twitter Deal

The SEC asks a San Francisco federal court to order Elon Musk to comply with its ongoing investigation over his 2022 Twitter purchase.

The XRP community has reacted to the lawsuit the United States Securities and Exchange Commission (SEC) filed against Elon Musk.

SEC Sues Musk

Yesterday, the SEC asked a federal court in San Francisco to order Musk to comply with its investigation into his 2022 purchase of X (formerly Twitter).

Recall that Musk paid a whopping $44 billion to complete his takeover of the leading social media platform in 2022. Shortly after the deal, the SEC launched an investigation to determine whether Musk violated federal securities laws.

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Consequently, the commission scheduled a testimony for September 15 at its San Francisco office to enable Musk to answer questions regarding the deal.

However, Musk failed to appear for the testimony. Furthermore, the SEC claimed it gave Musk another opportunity to testify close to his home in Texas, but the effort still ended in futility, thus prompting the regulator to file the lawsuit.

Musk and His Lawyer Respond

Interestingly, Musk took to X to respond to the SEC’s recent move, emphasizing the need for a comprehensive overhaul of the agency.

“A comprehensive overhaul of these agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain,” he tweeted.

Additionally, Musk’s attorney, Alex Spiro, disclosed in an email to the Wall Street Journal (WSJ) that the SEC has taken his client’s testimony “multiple times.”

XRP Community Reacts

As expected, the development stirred reactions from prominent XRP community members, including Attorney John Deaton, the founder of Crypto-Law US.

Reacting, Attorney Deaton suggests that the lawsuit might be politically motivated. He asserted that the SEC has become a joke and weapon used to protect both the incumbents and the status quo.

This isn’t political at all, right @elonmusk? What a joke the @SECGov has become. The SEC has become a weapon used to protect the incumbents and the status quo.

— John E Deaton (@JohnEDeaton1) October 5, 2023

In addition, top XRP influencer Sherrie speculated that the lawsuit could be related to Musk’s refusal to turn over former US President Donald Trump’s personal data on the X platform.

According to Sherrie, Musk’s refusal to surrender Trump’s data may have upset “someone,” forcing the authorities to find a logical reason to charge him.

Well, Musk did refuse to turn over Trumps personal data and such. Seems that rejection may have upset someone and now they’ve gotta find some reason to mess with the guy and make it look credible 🙄

— Sherrie 🌸 (@CherryEmpress21) October 5, 2023

However, former SEC official Marc Fagel described Sherrie’s speculation as “tinfoil hat stuff,” a term used to refer to people who believe in conspiracy theories.

So… after Musk/Twitter refused to respond to a DOJ subpoena for Trump’s data in early 2023, the SEC hopped into their Time Machine and opened an investigation of Musk in April 2022?

C’mon, this is tinfoil hat stuff.

— Marc Fagel (@Marc_Fagel) October 6, 2023