The U.S. Securities and Exchange Commission is reportedly investigating Tesla CEO Elon Musk's tweets about joke cryptocurrency Dogecoin, according to media reports that cite sources familiar with the matter.
As reported by U.Today, Musk's frequent tweets about the meme coin have had a great impact on its price action. The entrepreneur also went after Dogecoin whales, promising to pay them for abandoning the cryptocurrency.
This is not the first time that the Twitter account of the "former Dogecoin CEO" has gotten him in trouble with the SEC. In the past, the agency charged the billionaire with securities fraud over his controversial "funding secured" tweet about taking Tesla private before settling with him in April 2019. However, in a "60 Minutes" interview, Musk explicitly stated that he didn't respect the SEC.
In December, the much-feared regulator went after XRP issuer Ripple Labs with its landmark lawsuit.
Dogecoin (DOGE) is down over eight percent on the news.
This is a developing story. Stay tuned for updates.