Legal advisors warned that the US Securities and Exchange Commission (SEC) might investigate Tesla CEO Elon Musk for social media activity and statements regarding Bitcoin.
Tesla announced on February 8 that it purchased $ 1.5 billion worth of Bitcoin and will accept BTC payments very soon. Immediately after, the BTC price jumped above $ 48,000, breaking a record.
Doug Davison, one of Linklaters’ partners, who is a former head of division in the SEC’s sanctions unit, told The Telegraph:
“Given the Tesla CEO’s posts, Bitcoin’s pricing, and the latest movements in the market, it wouldn’t come as a surprise that the SEC is investigated.
Former European Central Bank Vice President, Vitor Constâncio, also said the SEC will investigate this situation.
It was not disclosed when Tesla had made this investment. In December, Musk said that Tesla could buy bitcoin, and this was followed by many statements that he supported bitcoin. Bitcoin kept going up & Tesla investment has appreciated. The SEC will look into this 5/
– Vitor Constâncio (@VMRConstancio) February 8, 2021
The SEC and the Commodity Futures Trading Commission have the power to initiate investigations in cases where they suspect market manipulation.
Musk shared many posts about Bitcoin and DOGE on Twitter, and these posts contributed to the Bitcoin activity on the social media platform reaching record levels.
Bitcoin jumped 20 percent last month after Musk added the #Bitcoin hashtag to his Twitter bio.
There is no doubt that the news that Tesla bought Bitcoin also contributed to the recent rise in the BTC price. The posts Musk shares with 46.5 million followers have the power to influence the market.
Tesla CEO recently said in his February 10 post that he bought Dogecoin for his son, and DOGE jumped 13 percent.
Bought some Dogecoin for lil X, so he can be a toddler hodler
— Elon Musk (@elonmusk) February 10, 2021