Elon Musk 'in danger of US regulator backlash after bitcoin tweets’

Cryptocurrency expert George from Cryptosrus has described how the boss of Tesla could "get in trouble with the SEC" after all of his contradictory bitcoin talk on Twitter. He added that Mr Musk "seems to have gone overboard especially when he responded to a tweet saying he will 'indeed' be selling bitcoin before the second quarter is over". The value of bitcoin and most of the alternative cryptocurrencies crashed after Mr Musk, who had formerly been a major proponent of cryptocurrencies, condemned bitcoin for its usage of electrical power.

Mr Musk tweeted a statement that read: "Tesla has suspended vehicle purchases using bitcoin.

"We are concerned about rapidly increasing use of fossil fuels for bitcoin mining."

A Twitter follower of Mr Musk said: "Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their bitcoin holdings.

"With the amount of hate Elon Musk is getting, I wouldn’t blame him."

Mr Musk seemed to verify this fear that Tesla may sell its bitcoin holdings.

Mr Musk answered the tweet by simply saying, "indeed".

This answer led to another shedding of the value of bitcoin until the cryptocurrency held at a resistance level of around $44,000

However, after suggesting Tesla had plans to dump the large amounts of bitcoin it holds on its balance sheet, Mr Musk had to quickly clarify that the company was not in fact planning to shed its exposure to the cryptocurrency.

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"Tesla stock skyrocketed and then turned out he didn’t have fund secured.

"SEC slapped him with a lawsuit, he settled."

"What he said yesterday with his 'indeed' tweet could be seen as confirmation that Tesla either sold or will sell bitcoin in quarter two.

"Had Tesla stock skyrocketed based on the news and then it turns out they didn’t sell any bitcoin this would be again a huge violation that the SEC would go after him for.

"That is why I’m almost certain Tesla lawyers or someone from the inside told him to clarify asap.

"On top of this, the SEC is probably going to disallow bitcoin ETFs because of Elon’s actions and his power to sway the bitcoin market."

Express.co.uk has contacted Elon Musk’s company Tesla for comment.

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