According to CCTV News, on October 5 local time, the US Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk, requiring Musk to testify in its investigation of his 2022 acquisition of Twitter (now X).
"The SEC has followed all appropriate administrative steps required in seeking Musk's testimony, but Musk has refused to comply with the subpoena and the SEC is now asking the court to step in and compel Musk to cooperate," the SEC said in a statement.
The US Securities and Exchange Commission (SEC) opened an investigation into Musk's acquisition of Twitter in April 2022 to determine whether Musk committed any illegal acts in connection with the acquisition of Twitter stock and related financial documents.
Despite multiple subpoenas issued by the SEC since May, Musk has refused to testify by delaying scheduled dates and refusing to appear. According to the SEC, "Musk's continued refusal to comply with the SEC's administrative subpoenas obstructed and delayed the SEC staff's investigation into whether he violated the federal securities laws." As a result, the SEC is now asking the court to compel Musk to appear at the investigative hearing."
According to the New York Times on March 7, the US Federal Trade Commission is intensifying its investigation into Twitter's management of data and private information practices, and is seeking testimony from Elon Musk on the matter.
Five people familiar with the matter, who spoke on the condition of anonymity, said the FTC investigation is focused on whether Twitter has enough resources to protect the privacy of its users after Musk ordered massive layoffs and budget cuts.
The Federal Trade Commission currently oversees Twitter. The FTC stepped up its investigation into Twitter's security and privacy issues last year after three Twitter executives responsible for user privacy, security and compliance resigned shortly after Musk bought the company.
According to CCTV finance, Musk completed the acquisition of Twitter at the end of October 2022, and after officially taking over, he fired the chief executive officer and chief financial officer and other senior managers, and on November 4, 2022, he slashed half of the staff, affecting about 3,700 people. Musk said Twitter was losing more than $4 million a day and had "no choice" but to cut jobs. He also said the dismissed employees would be offered severance pay equivalent to three months 'salary. It is understood that the layoffs not only involve the San Francisco, California headquarters and multiple branches in the United States, but also involve Twitter's branches in other countries and regions.
According to Reuters, local time on November 10, 2022, a number of Twitter executives resigned on the same day, including Twitter chief information security officer Lea Kissner (Lea Kissner) and cybersecurity director Yoel Roth (Yoel Roth).
Elon Musk said on Tuesday that he would not rule out bankruptcy at Twitter as more executives quit.