The U.S. Securities and Exchange Commission (SEC) is preparing to reprimand Elon Musk for his absence from a scheduled hearing. This testimony is part of an ongoing investigation into Musk's $44 billion acquisition of X, previously known as Twitter.

What Happened: Musk was expected to testify before the SEC on September 10. However, Musk's lawyer informed the SEC that Musk had to urgently travel to Cape Canaveral, Florida for the launch of SpaceX's Polaris Dawn, thereby missing the testimony.

According to a report by The Hill, this is the second time Musk has failed to appear before the SEC in relation to the probe into his acquisition of the social media platform, now known as X.

"Musk has now failed to appear before the SEC twice: first in September 2023, in defiance of a lawful administrative subpoena, and last week, in defiance of a clear court order," stated SEC's lawyer Robin Andews in the court filing.

Alex Spiro, Musk's lawyer, has labeled the SEC's sanctions as "drastic" and confirmed that a new date for the testimony has been agreed upon.

Also Read: New Book Reveals Elon Musk's Twitter Buy Fumble And Mix-Up Over Grimes' Baby Name

He emphasized that the rescheduling was due to a "critical" rocket launch and dismissed concerns of a similar emergency happening in the future.

Meanwhile responding to SEC's claim Musk went on X and said that 'actual crimes go unpunished'.

Why It Matters: The SEC's reprimand of Musk underscores the regulatory body's commitment to enforcing compliance, even when dealing with high-profile individuals like Musk.

This incident also highlights the challenges Musk faces in balancing his responsibilities as CEO of Tesla and his other ventures, such as SpaceX.

The SEC's ongoing probe into Musk's acquisition of Twitter, now X, is a significant event, given the size of the deal and the potential implications it could have on the social media landscape.

The outcome of this investigation could set a precedent for future tech acquisitions and regulatory compliance.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.