Can Elon Musk go to jail for price manipulation and shilling Shitcoins?
Elon Musk’s tweets have always been the focus of controversy.Every time a billionaire is on Twitter coin, That price coin Skyrocketing. The CEO of Tesla has been promoting coins affectionately called “shitcoins” on Twitter.
Musk started working with Doge in February when he Tweet Debut Doug. Then following the governor is the people’s cryptocurrency.This immediately sent the price coin As people start to buy coin. Elon will continue to do this with other altcoins.
A hotly debated topic is the legitimacy of these tweets that seem to be aimed at manipulating market prices.
Some people call it the insider trading version. However, since cryptocurrency is still heavily regulated, there is no insider trading law in the cryptocurrency field. There is no law governing market manipulation. Due to the high volatility, digital assets are easily manipulated.
This is not the first time a celebrity has used their platform to defraud coins. John McAfee is notorious for his first sale to an ICO, but he did not disclose that he was paid for it. This led to his subsequent arrest in Spain.
John McAfee arrested
During the last bull market that started in 2017, ICO was a big deal. Dozens of ICOs are released every day, and the market becomes saturated.
In order to let more people see their coins, the people behind the ICO took the route of letting influential people tweet. John McAfee is the obvious choice.
He claimed that he collected $105,000 on Twitter coin Or ICO. According to the US Securities and Exchange Commission, McAfee earned $23 million through ICOs.
Bitcoin price | Source: BTCUSD on TradingView.com
He was arrested not directly because of the shilling, but part of it. Since there is actually no law on shillings, the SEC has to take the path of tax evasion. He was accused of failing to disclose the income of the ICO and transferring his income through cryptocurrency to avoid paying taxes.
At the request of the US Securities and Exchange Commission, McAfee was arrested in Spain on October 5, 2020. He is currently being held in Spain. His extradition has not yet been determined.Use McAfee claim He would die in prison and be extradited to the United States.
Elon Musk’s tweets
This is not the first time that Musk’s tweets have problems. As early as 2018, because Elon Musk posted misleading facts about his company Tesla on Twitter, the US Securities and Exchange Commission requested civil contempt for Elon Musk.
These tweets include claims that the automaker will produce 500,000 cars per year. It is also claimed that he obtained funds without obtaining funds. These tweets are said to manipulate the company’s stock price.
Related Reading | Bitcoin Mining Council: We need to address negative media reports
In this regard, Elon Musk said that his tweets are part of his right to freedom of speech. And he can tweet as much as he wants.
Subsequent lawsuits allowed the CEO to use Twitter freely, but with certain restrictions. His tweets are important to shareholders and need to be reviewed before they are allowed to be posted.
But cryptocurrency is not included in the billionaire’s list of restricted topics. Therefore, he started to pay shilling coins on his Twitter account.His most recent shilling project is coin chick Apart from stealing money, it has absolutely no use cases.This coin After Musk tweeted, the stock price rose by more than 70%.
No legal measures were taken against Musk in response to these tweets. This is because there is no law that can be said to have been violated at this time.
Featured image from Robb Report, chart from TradingView.com