Industry Odisha Bureau, May 5: Even though Elon Musk, the Canadian-American business magnate and present owner of world-renowned social media platform X (formerly Twitter), reportedly did not admit to the allegations of US Federal Agency Securities and Exchange Commission (SEC), his attorney’s letter reportedly submitted with the SEC yesterday (May 4) stated that Musk has agreed to pay the $1.5 million penalty slapped on him.
As per media reports, a “revocable trust” of Elon Musk would pay the penalty amount in a bid to put an end to the SEC’s lawsuit.
Notably, Elon Musk formally acquired Twitter in 2022 and renamed it as X, while SEC sued Musk in January 2025 alleging:“He cheated Twitter shareholders in 2022 by failing to properly disclose his growing stake in the social media company”.
The SEC lawsuit also reportedly alleged that Musk’s cheating resulted in “shareholders missing out on big gains”, and also Musk “stockpiled shares at an unfair discount behind the scenes”.
