The U.S. Securities and Exchange Commission (SEC) is investigating Twitter's security breaches that occurred before Elon Musk's takeover of the company, now rebranded as the X app. The investigation focuses on how the former Twitter leadership, including CFO Ned Segal and CTO Parag Agrawal, handled security flaws that emerged in 2018. The SEC is looking into whether shareholders were adequately informed about these privacy issues and whether appropriate security controls were in place. These breaches exposed users' personal information, including email addresses and the countries associated with their accounts. The review does not currently involve any accusations of wrongdoing, and the investigation's conclusion date remains unclear.
Simultaneously, the SEC is also investigating Elon Musk's acquisition of Twitter, scrutinizing whether he violated federal securities laws during his stock purchases and related statements and filings. Elon Musk acquired Twitter with a $44 billion bid last year, leading to a restructuring at the company.