bitcoin buy, Conflict of Interest, corporates bitcoin, Elon Musk, elon musk bitcoin, Tesla, tesla bitcoin buy, tesla bitcoin purchase

Tesla is facing more scrutiny over its $1.5 billion dollar bitcoin purchase. A Tesla board member who reportedly approved the company’s bitcoin buy deal is a cryptocurrency investor who also sits on the boards of two major crypto firms.

Experts Question Conflict of Interest in Tesla’s Bitcoin Purchase

Tesla is further under scrutiny over its bitcoin purchase as experts now question whether there is a conflict of interest surrounding a director who approved the company’s big bitcoin purchase, the Telegraph reported Tuesday. Tesla recently revealed that it bought $1.5 billion worth of bitcoin in January and plans to accept the cryptocurrency as a form of payment for its products in the near future.

The conflict of interest question surfaced when it emerged that a Tesla director who approved the company’s bitcoin buy is also a crypto investor with ties to two crypto firms, the publication described. Antonio Gracias is listed on the Tesla website as an independent director and a member of the audit committee that signed off Tesla’s bitcoin deal. A long-time friend of Musk, he invested in Tesla in 2005 and has been on its board since 2007.

Gracias is also the founder, CEO, and chief investment officer of investment firm Valor Equity Partners, which has invested in two crypto companies. The first company is crypto custody service provider Bitgo and the other is crypto derivatives trading platform Erisx. He also sits on their boards. The publication added that Gracias was previously an investor in another crypto firm, the tokenization platform Harbor, which Bitgo acquired last year. The news outlet conveyed:

Charles Elson, a finance professor at the University of Delaware, said: “Good prudence would have suggested a recusal in those circumstances.â€

Bill Klepper, a professor of management at Columbia Business School, explained: “If there’s any direct conflict or appearance of that, you better stay arm’s length away from it. The right thing to have done would be to get the advice of legal counsel. We don’t know if he’s done that or not.†He further opined:

Gracias also sits on the board of Musk’s rocket company, Spacex, the news outlet added, noting that he is stepping down from Tesla this year.

Recently, lawyers warned that Tesla CEO Elon Musk could be probed by the U.S. Securities and Exchange Commission (SEC) over the electric car company’s bitcoin purchase. Meanwhile, the value of Tesla’s bitcoin stash has appreciated substantially as the price of BTC surged from around the $30K to $40K level in January to $52,408 at the time of writing.

Do you think there was a conflict of interest over Tesla’s bitcoin buy? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

RELATED NEWS

Speechwriter for Former US President George Bush Says BTC Rally Driven by ‘Historically Low Interest Rates’

A speechwriter for former U.S. President George W. Bush and a bitcoin critic, David Frum has claimed that the low-interest rates are fueling the crypto asset’s rally. Frum suggests that the crypto asset might experience a “fast and deep price crash†if and when interest rates start to rise. Institutional Interest in BTC In comments […]

Xem chi tiết: Speechwriter for Former US President George Bush Says BTC Rally Driven by ‘Historically Low Interest Rates’

Gold Bull Jeffrey Gundlach Says ‘BTC Maybe the Stimulus Asset’ Ahead of the Precious Metal

Renowned gold bull and CEO of investment management firm Doubleline, Jeffrey Gundlach says bitcoin may be the “stimulus asset†while adding it “doesn’t look like gold is.†Gundlach, a self-professed long-term dollar bear, had preceded his comments about bitcoin by remarking that “lots of liquid poured into a funnel creates a torrent.†BTC Outperforming Gold […]

Xem chi tiết: Gold Bull Jeffrey Gundlach Says ‘BTC Maybe the Stimulus Asset’ Ahead of the Precious Metal

Elon Musk Says Holding Bitcoin Is Less Dumb Than Cash, Disputes Peter Schiff’s Claims About Money and BTC

Tesla and Spacex CEO Elon Musk has clarified his position on bitcoin. Emphasizing that he is an engineer, not an investor, Musk says that bitcoin “is simply a less dumb form of liquidity than cash.†Musk also disputed gold bug Peter Schiff’s claims about bitcoin and commented on the price of the cryptocurrency. What Elon […]

Xem chi tiết: Elon Musk Says Holding Bitcoin Is Less Dumb Than Cash, Disputes Peter Schiff’s Claims About Money and BTC

Survey Finds Many Finance Managers Are Not Planning to Hold BTC— Volatility Cited as Key Concern

A new poll of finance managers by Gartner Finance finds that a majority are not planning to hold bitcoin as a corporate asset. In their responses, most of the 77 finance leaders interviewed cite bitcoin’s volatility as one characteristic of the crypto asset that is “extremely difficult to mitigate.†The Concerns of Finance Executives The […]

Xem chi tiết: Survey Finds Many Finance Managers Are Not Planning to Hold BTC— Volatility Cited as Key Concern

Elon Musk Urges Dogecoin Whales to Dump Their Coins — Even Offers to Pay Them

Tesla CEO Elon Musk believes that too many dogecoins are held by too few whales and has made them a huge offer. He will give his full support if they sell most of their coins, and will even pay actual money for them to destroy their coins in some provable fashion. Some believe that major […]

Xem chi tiết: Elon Musk Urges Dogecoin Whales to Dump Their Coins — Even Offers to Pay Them

Mexican Companies Are Willing to Join the Bitcoin Bandwagon in the Wake of Tesla’s Investment, Says Expert

Bitcoin-buying frenzy among major companies could hit Mexican firms soon, as interest keeps increasing across the country. An expert is expecting that local businesses will follow the same path as mainstream U.S.-based companies such as Tesla. Current Bitcoin Performance Could Make Companies Rethink Their Business Models During an interview with El Economista, Mauricio Hurtado, managing […]

Xem chi tiết: Mexican Companies Are Willing to Join the Bitcoin Bandwagon in the Wake of Tesla’s Investment, Says Expert

Elon Musk Urges Dogecoin Whales to Dump Their Coins — Even Offers to Pay Them

Tesla CEO Elon Musk believes that too many dogecoins are held by too few whales and has made them a huge offer. He will give his full support if they sell most of their coins, and will even pay actual money for them to destroy their coins in some provable fashion. Some believe that major […]

Xem chi tiết: Elon Musk Urges Dogecoin Whales to Dump Their Coins — Even Offers to Pay Them

Bitcoin Snaps Back After Slight Dip, Current BTC Chart ‘Is Near Identical to August 2017’

Digital currency prices are on the move again, after tumbling a hair downwards during Sunday evening’s trading sessions. On Sunday the price of bitcoin dropped -7.64% after touching a lifetime price high at $49,715 and then slid to $45,915. As trading sessions entered into Monday, BTC has regained some of the losses as it jumped […]

Xem chi tiết: Bitcoin Snaps Back After Slight Dip, Current BTC Chart ‘Is Near Identical to August 2017’

Bitcoin Snaps Back After Slight Dip, Current BTC Chart ‘Is Near Identical to August 2017’

US Government Won’t Allow Corporates to Keep Replacing Dollars With Bitcoin, Warns Investment Advisor

El Español Says Spanish Authorities Joint Statement Is a Warning to Companies in the Wake of Tesla’s BTC Buy

Elon Musk Could Face SEC Investigation Over Tesla’s Bitcoin Buy, Lawyers Warn

2021 Crypto Market Stats Show a Number of Other Coins Gained More Than Bitcoin

Haunted by Past Elon Musk Predictions, Gold Bug Peter Schiff Tears Into Tesla’s BTC Acquisition

Mysterious Address With $3 Billion in Dogecoin Sends Cryptic Binary Messages to Elon Musk

Reddit Post Reporting Tesla’s Bitcoin Purchase From a Month Ago Was a Hoax

Other Articles