Elon Musk SEC Fraud Inquiry Targets Agency Abuses

The verified DOGE SEC account, which is affiliated with Musk's operation, went live on Monday to gather information on SEC "waste, fraud, and abuse."

Billionaire Elon Musk has set his sights on the Securities and Exchange Commission (SEC) with a new initiative aimed at investigating fraud and abuse within the agency.

Announced through a newly created “DOGE SEC” account, Musk’s Department of Government Efficiency is calling on the public to report any wrongdoing within the SEC.

For those unaware, the White House’s Department of Government Efficiency, or DOGE, was set up by President Donald Trump on January 20. Its goal is to reduce federal spending, with Musk overseeing the task force.

“We are moving fast, so we will make mistakes, but we will fix the mistakes very quickly,” Musk had said previously.

Musk SEC Fraud Inquiry Targets Agency Abuses

The verified DOGE SEC account, which is affiliated with Musk's operation, went live on Monday to gather information on SEC “waste, fraud, and abuse.”

Its post on the X platform read, “DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission.”

Musk has long been critical of the SEC and has now vowed to uncover possible wrongdoing within the agency. The move is a continuation of Musk's earlier investigations into other government agencies like the Federal Reserve and the Department of Justice.

In response to the tweet, Coinbase’s Chief Legal Officer, Paul Grewal, proposed a rule that would allow defendants who successfully defeat SEC lawsuits to recover all their attorney fees and costs from the Commission’s budget.

Critics also pointed to figures like Gary Gensler, Jay Clayton, and Bill Hinman, accusing them of corruption and unethical conduct. Some have even requested an investigation into the ETHGate scandal.

SEC Pauses and the Future of Crypto Lawsuits

The SEC is currently witnessing internal changes. Recently, the SEC and Binance jointly requested a 60-day pause in their case, which dates back to June 2023, alleging violations of securities laws.

This move has raised expectations that other crypto defendants, including Ripple, Coinbase, and Kraken, might file similar motions for a temporary pause in their respective cases.

The Ripple lawsuit has entered a critical phase. As of January 23, 2025, Ripple has asked for a deadline of April 16 to file its response to the SEC’s appeal from January 15.

With the DOGE task force now underway, it remains to be seen how this will affect cases like Ripple’s, which are considered non-fraud cases.