Elon Musk is under investigation for alleged cryptocurrency manipulation

Tram Ho

By the close of trading on Feb. 25, Tesla’s share price has fallen 8% and its market value has fallen back to $ 654.8 billion. Market rumor is said to have played a major role in that. According to the latest source, the US Securities and Exchange Commission (SEC) may be investigating Tesla CEO tweets about Dogecoin (DOGE). In response to a question from netizens, Musk replied: “I hope they investigate, it will be great!”

With the tweet about the privatization of Tesla, on September 27, 2018, the SEC officially charged Musk with stock fraud. Elon Musk then reached a deal with the SEC, was forced to give up the chairmanship of Tesla and pay a total of $ 40 million in fines. After Musk became the richest person in the world with Tesla’s stock price skyrocketing in early January, Tesla investor Ross Gerber once told the media: “ Over the years, some of Musk’s actions have been. shock and make a big impact “.

Elon Musk bị điều tra vì cáo buộc thao túng tiền điện tử - Ảnh 1.

The US Securities and Exchange Commission turned its sights on Elon Musk again. (Illustration)

As of February 2021, coming to an end, Musk has maintained a high level of attention for digital currencies, with dozens of tweets mentioning DOGE. As early as 2015 Musk bought DOGE, also, some users have been making a lot of money by the bull market since 2020 – when Musk posted his wealth story on Reddit.

Such successful case sharing increases the enthusiasm of SatoshiStreetBets (Reddit group name) members. Like the WallStreetBets behind GameStop’s stock price rebound, SatoshiStreetBets was the rallying point for DOGE’s recovery. Before that, Musk was the one who ignited the flame of the cryptocurrency’s recovery. In April 2019, the Tesla CEO posted that DOGE was “the favorite cryptocurrency” and revised the introduction on the Twitter homepage.

In 2013, DOGE suddenly became popular on Reddit and Tumblr, Doge Meme is also widely known on global social platforms like Facebook. Coinmarketcap data shows that Dogecoin has once soared to the top 7 of the world’s top digital currencies. Musk’s insane backing is the direct reason why Dogecoin soared over the past two months.

On February 4, Musk voiced his support for the cryptocurrency, saying: ” We don’t need to be billionaires to have Dogecoin. Dogecoin is everyone’s virtual currency … I only have Dogecoin in my heart. “. Two days later, Musk launched a poll about the future earth currency on Twitter, with more than 1.28 million participants, of which 71% of netizens chose Dogecoin as the future currency.

In addition to backing Dogecoin, Musk also targeted Bitcoin and quickly changed his Twitter signature to #bitcoin on Jan. 29. Having said that, the biggest driver for Bitcoin to rise from $ 30,000 to $ 50,000 is Musk, of course, also includes the backing of the richest man on earth and the godfather of retail.

The Tesla behind Musk is not idle either. On Feb. 8, Tesla submitted an announcement to the SEC, revealing that it had purchased $ 1.5 billion worth of bitcoins and will begin accepting bitcoin as a form of payment. Immediately after the news broke, the value of Bitcoin soared to $ 47,000. Musk also mentions Bitcoin more often. As a result, according to an analysis by investment agency Wedbush Securities, Tesla has made at least $ 1 billion from investing in Bitcoin, while its annual net profit from the sale of cars in 2020 is just $ 721 million. .

From the fact that Musk can directly influence Dogecoin and Bitcoin’s ups and downs, plus Tesla’s massive investment in Bitcoin, it’s not hard for the SEC to investigate, according to analysts in the brokerage industry. remarks from Musk. As Stephanie Avakian, co-director of SEC law enforcement, says CEOs of listed companies speak through social media or other non-traditional forms of communication and still need to be regulated. .

In addition to Tesla, Space X, another of Musk’s key companies, is also affiliated with Dogecoin. On Feb. 17, when responding to a netizen’s idea to develop Eloncoin, Musk said that ” there will definitely be a Mars coin ” in the future. A week later, Musk updated the image of Dogecoin moon landing on Twitter, with the words: “understand by image”.

As an unlisted company, the relationship between Space X and Dogecoin has yet to reach the level of SEC scrutiny. As his agent, Musk does more than that, firing Tesla’s public relations division in the US and seeing Twitter as the site for company announcements. Tesla deliberately submitted documents in 2013 to inform secondary markets that the company intends to use Musk’s Twitter account to post important information and encourage investors to review Musk’s tweets.

However, this approach has been opposed by the SEC. His heavy reliance on the CEO led Tesla to face SEC investigations and penalties in 2018. This time, Elon Musk continues to suffer the consequences and the US Securities and Exchange Commission’s investigation. Elon Musk is likely to have a significant impact on Tesla, as well as a direct impact on the rise and fall of Bitcoin and Dogecoin in the near future.

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Source : Genk