NEW YORK – According to a source familiar with the situation, the U.S. Securities and Exchange Commission has set a deadline for Elon Musk to respond to an offer aimed at settling an investigation related to his $44 billion acquisition of Twitter in 2022. The deadline is this coming Monday, as reported by Reuters.

This update suggests that the SEC’s investigation may be reaching its end, marking a new chapter in the ongoing public dispute between the U.S. markets regulator and Musk, recognized as the world’s richest individual.

On Thursday, Musk shared on X a letter from his lawyer to SEC Chair Gary Gensler, revealing that Musk had been given a mere 48 hours to accept a penalty to resolve the investigation or face civil charges. Musk’s correspondence also questioned whether Gensler was personally involved in this situation.

The SEC has been looking into whether Musk violated securities regulations when he purchased shares of Twitter, now known as X, and related statements and paperwork associated with that acquisition.

The source indicated that the SEC is investigating Musk’s filing regarding his Twitter share acquisitions, which was submitted at least 10 days late, as well as whether he intended to gain an advantage from this delay, which some experts estimate saved him over $140 million.

To further the investigation, the SEC previously sought a federal court’s assistance to require Musk to testify after he missed scheduled depositions.

On Tuesday, the SEC extended Musk’s settlement response deadline to Monday following his request for additional time, according to the source who spoke under the condition of anonymity due to the confidential nature of the enforcement matters.

The SEC’s public affairs office declined to provide comments, and Musk’s attorney did not respond immediately to inquiries.

SEC’s Settlement Focus

Typically, the SEC prefers resolving investigations through settlements instead of litigation; however, legal analysts noted that the initial 48-hour deadline was unusually short. If Musk does not respond, the SEC might start a formal “Wells” process, detailing potential charges against him and allowing him to reply.

The letter Musk disclosed on X, authored by attorney Alex Spiro, also indicated that the SEC has reopened an inquiry into Musk’s Neuralink, a brain-chip company.

Neuralink did not provide comments upon request. The specifics of this new investigation are unclear, but U.S. legislators and animal rights groups have urged the SEC to investigate Musk’s statements regarding the safety of Neuralink’s implants.

The SEC’s legal action against Musk dates back to 2018, during then-President-elect Donald Trump’s initial term, when Musk was accused of misleading the public with a social media post stating he had “funding secured” to take Tesla private—an assertion later found to be false.

Although Musk reached a settlement and agreed to an unusual arrangement which required certain posts to undergo attorney review, he has repeatedly disputed the SEC’s findings and has accused the agency of harassment—claims that were reiterated by Spiro in the letter sent on Thursday.

In the letter, Spiro demanded, “We need to understand who ordered these actions—was it you or the White House?”

A significant supporter of Trump, Musk will serve as co-leader of a new Department of Government Efficiency in the current administration, a role that could afford him influence over SEC operations.