SEC Reopens Probe into Neuralink, Says Musk’s Lawyer
In recent news, the U.S. Securities and Exchange Commission (SEC) has decided to reopen an investigation into Neuralink, Elon Musk’s brain-chip startup. This move was confirmed by a letter shared by Musk on the social media platform X. The letter, dated December 12, was sent by Musk’s lawyer, Alex Spiro, to outgoing SEC Chair Gary Gensler. It mentioned that the commission had issued a settlement demand to Musk, giving him 48 hours to accept making a monetary payment or face charges on multiple counts. The exact amount demanded was not disclosed in the letter.
Elon Musk has a history of contentious interactions with the SEC. Just last year, four lawmakers called for an investigation into Musk for potential securities fraud related to claims about the safety of a brain implant developed by Neuralink. It’s uncertain how much progress the SEC will make in any legal action against Musk, given his significant influence. Despite these challenges, Spiro emphasized in the letter that they would not be intimidated by the SEC and would exercise their legal rights.
Musk’s prior encounters with the SEC include the regulatory scrutiny over his involvement in the $44 billion Twitter takeover. Interestingly, a federal judge recently denied the SEC’s request to sanction Musk for failing to appear for court-ordered testimony in connection to this matter. Additionally, Musk settled a lawsuit with the SEC in 2018 for $20 million over tweets regarding taking Tesla private, agreeing to pre-approval of some social media posts related to Tesla and stepping down as chairman.
Both the SEC and Neuralink have not commented on the recent developments. It’s worth noting that Musk’s other companies, Tesla and SpaceX, are also in the limelight. Musk’s immense wealth and involvement in various sectors are likely to keep him in the news for the foreseeable future. The details shared in the letter from Spiro to Gensler hint at further legal wrangling ahead, but Musk seems prepared to face the challenges head-on.
