Elon Musk scored a major victory against the SEC, as a federal judge rejected the agency's attempt to punish him for missing court-ordered testimony. The case involving Musk's $44 billion Twitter acquisition took a major turn when Judge Jacqueline Scott Corley ruled in his favor, leaving the SEC empty-handed.

Judge rules in favor of Musk

The SEC asked the court to penalize Musk for missing a scheduled testimony on September 10, 2023. The regulator argued that his absence violated a previous court order issued on May 31.

Still, U.S. District Court Judge Jacqueline Scott Corley ruled that sanctions were unnecessary. She noted that Musk testified on October 3 and paid the SEC $2,923 in travel expenses.

Furthermore, the SEC argued that simply reimbursing travel expenses would not deter others from ignoring court orders, especially those with the financial wherewithal like Musk.

Later in his ruling, Judge Corley stated, “Because the facts as they stand preclude any opportunity for the court to grant meaningful relief, the SEC’s request is meritless.” The decision means no further sanctions will be imposed on Musk, essentially closing the case.

Musk explains his absence

Musk explained his absence by saying he was in Florida overseeing SpaceX’s Polaris Dawn mission on the day of the scheduled hearing. His legal team also pointed out that he fully complied with the court order by testifying in early October.

Musk criticizes SEC

Following the ruling, Musk took to X (formerly Twitter) to celebrate his victory. He quoted a tweet from an X user who praised Musk for winning against the SEC.

In response, Musk humorously remarked, "SEC. The middle word is definitely 'Elon's,' but I can never remember what the other two mean."

Support from the Crypto Community

Musk's victory was celebrated by many, including Dogecoin founder Billy Markus, also known as Shibetoshi Nakamoto, who joined in supporting Musk, calling the SEC a "nasty organization."

This sentiment has resonated with the crypto community, especially XRP fans, many of whom have criticized the SEC for its ongoing lawsuit against Ripple, which began in 2020.

Musk's victory is not only a personal victory but also a blow to the SEC's reputation, especially as the regulator continues its legal battle with Ripple over its classification of XRP as a security.