Joe Biden’s U.S. Department of the Treasury officials are now looking into if they can legally probe Elon Musk’s takeover of Twitter. The Department is reported to be concerned over Musk’s alleged ties to foreign investors. Sources told the Washington Post that foregoing investors could have access to Twitter’s finances. Other sources say that the FBI has also looked into possible “counterintelligence risks” related to Musk’s purchase.
Additionally, Treasury employees at the Committee on Foreign Investment in the United States (CFIUS) have not yet determined whether Musk’s buyout could trigger a national security review, one person noted.
CFIUS reviews are typically used to investigate investments by foreign nationals, and Musk is a U.S. citizen, so it remains unclear whether they can initiate such a review.
The Washington Post also noted that the U.S. government exploring whether it can review a deal like Musk’s is “fairly routine,” and oftentimes does not result in “full-blown reviews.”
“CFIUS is committed to taking all necessary actions within its authority to safeguard U.S. national security,” a Treasury spokesperson said. “Consistent with law and practice, CFIUS does not publicly comment on transactions that it may or may not be reviewing.”
Musk formalized the purchase on October 27, which resulted in the firing of multiple executives at the company for cause. The purchase cost $44 billion, and Musk has already floated many new ideas, such as giving a blue verification badge to anyone who will pay $8/month to use the service.