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Elon Musk has scored a major win against the SEC, as a federal judge rejected the agency’s push to sanction him for missing court-ordered testimony. The case, tied to Musk’s $44 billion Twitter takeover, took a dramatic twist when Judge Jacqueline Scott Corley ruled in his favor, leaving the SEC empty-handed.
Judge Rules in Musk’s Favor
The SEC had requested the court to penalize Musk for missing a scheduled testimony on September 10, 2023. The regulator argued that his absence violated a prior court order issued on May 31.
Despite this, U.S. District Judge Jacqueline Scott Corley ruled that sanctions were unnecessary. She noted that Musk had already testified on October 3 and paid the SEC’s travel costs amounting to $2,923
Further, the SEC argued that simply repaying travel costs would not deter others from ignoring court orders, especially someone of Musk’s financial means.
Later in her ruling, Judge Corley stated, “Because the present circumstances forestall any occasion for meaningful relief that the court could grant, the SEC’s request is moot.” This decision meant that no further sanctions would be imposed on Musk, effectively closing the case.
Musk Explains His Absence
Musk had explained his absence by stating that he was in Florida overseeing SpaceX’s Polaris Dawn mission on the day of the scheduled testimony. His legal team also pointed out that he had fully complied with the court order by testifying in early October.
Musk Slams The SEC
Following the ruling, Musk took to X (formerly Twitter) to celebrate his victory. He quoted a tweet from an X user, who praised Musk for winning over the SEC.
In response, Musk humorously remarked, “SEC. The middle word is definitely ‘Elon’s,’ but I can never remember what the other two words stand for.”
Support from the Crypto Community
Musk’s victory was celebrated by many, including Dogecoin founder Billy Markus, also known as Shibetoshi Nakamoto, who joined the chorus of support for Musk, calling the SEC an “annoying organization.”
This sentiment resonated within the crypto community, particularly among XRP fans. Many criticized the SEC for its ongoing legal case against Ripple, which began in 2020.
Musk’s win is not just a personal triumph, it’s also a blow to the SEC’s credibility, especially as the regulator continues its legal battle with Ripple over the classification of XRP as a security.