Elon Musk in the sights of the US authorities – Has he manipulated the crypto market?

Musk decidedly flanks the SEC – Tesla CEO Elon Musk may be the subject of a new SEC (US Securities and Exchange Commission) investigation . In question: repeated tweets, highlighting the Doge cryptocurrency, and having the effect of an artificial modification of the price of this cryptocurrency.

Tweets now ritualized

For several weeks now, Elon Musk has regularly posted sober and concise tweets that highlight Dogecoin . On Wednesday February 24, for example, the CEO of Tesla posted a tweet with one word: “ Literally “ . The same tweet contained a photo of the famous Shiba Inu in a spacesuit, with a flag planted with the word “WOW” on it . This illustration uses the Dogecoin codes and logo, which was enough to make the markets react. Indeed, on Wednesday, at 10:17 a.m. (GMT + 0), the cryptocurrency was up 23.11% , to $ 0.0581.

Likewise, on February 19 , the man told his 46 million subscribers that he had purchased some for his nine-month-old son . The price of cryptocurrency jumped 16% following this tweet.

This type of event is not uncommon . The Internet has even coined the term “Musk Move” to reflect the massive influence the billionaire has on the prices of everything from Bitcoin Trader to GameStop to Etsy.

Possible lawsuits

Because of these actions, it is likely that Musk is now the subject of an investigation, initiated by the SEC . While the rumor has yet to be confirmed , Musk’s recent activity on Twitter is more than enough to justify these suspicions.

We also know that Musk’s tweets have been under SEC surveillance for some time, due to suspected manipulation of Tesla’s price in 2018. The CEO has since maintained a relationship of hatred with the SEC, and seems to like the idea of ​​a new round with the regulator. In 2018, Musk said, “I don’t respect the SEC.”

It is not yet possible to know for sure whether these prosecution rumors are well founded. It is also likely that this information is false, and that it aims to manipulate the markets . If that turns out to be the case, the CEO of Tesla will likely be disappointed to be deprived of his privileged fight with the SEC in this way.

Beyond the purely legal aspect, Musk’s recent actions still raise questions. In this case, it is interesting to observe that only one man manages to shift the prices of a cryptocurrency classified in the top 20.