Lawyer and entrepreneur has warned Tesla boss that he may get in legal trouble with the SEC over Dogecoin
Crypto-Law founder John Deaton tagged Elon Musk in a recent tweet, warning the billionaire that his frequent tweets promoting Dogecoin could cause him the same legal problem as the Ripple token and XRP.
Here’s how Musk and his companies might get in trouble
John Deaton responded to a tweet of a person with a Twitter nickname @JayBlessed901. The latter wrote sort of complained about the unfairness of the SEC chairman Gary Gensler’s long-lasting suit against Ripple – a company that has over 300 large financial institutions among customers outside the US, while Elon Musk drives the DOGE price up with his tweets freely.
It’s not that the Twitter user was trying to get the SEC to sue Musk, however, Deaton found it possible and warned the boss of Tesla, SpaceX, Starlink and two small companies.
The lawyer believes that Gensler and the SEC may identify Dogecoin as an investment contract with Musk and his companies.
However, it seems that the so-called Elon Musk effect on the price of Dogecoin is fading away. Earlier this week, Musk’s tweet was about to push DOGE for no more than about 23 seconds, as covered by U.Today.
In that tweet, he wrote jokingly “Dogecoin Trillionaire”, trolling those who use the word “billionaire” as a pejorative.
SEC comes to Musk over his Twitter stake disclosure
The SEC released a letter to Elon Musk, in which the regulator asked why the billionaire had filed disclosure of his 9.2% stake in Twitter later than he was originally required to.
Musk sent in a schedule 13G form to announce his new holding on April 4, rather than on March 25 as he was expected according to the rules. An investor has ten days to disclose a stake in a company that exceeds 5 percent.
The SEC said after receiving a response from Musk, it “may have additional comments” to make.
