The U.S. Securities and Exchange Commission (SEC) has reopened an investigation into Neuralink, Elon Musk’s brain-chip startup, according to a Dec. 12 letter shared by Musk on X (formerly Twitter). The letter, written by Musk’s lawyer Alex Spiro and addressed to outgoing SEC Chair Gary Gensler, revealed that the SEC issued Musk a 48-hour deadline to accept an undisclosed monetary settlement or face charges related to his $44 billion Twitter acquisition.
The SEC’s renewed scrutiny follows allegations that Musk misled investors about Neuralink’s brain implant safety. Four lawmakers previously requested an investigation into possible securities fraud. Musk, who also leads Tesla and SpaceX, has frequently clashed with the SEC. In 2018, he settled a lawsuit over tweets about taking Tesla private by paying a $20 million fine and agreeing to have Tesla lawyers pre-approve certain posts.
Spiro asserted in the letter that Musk and his team would not be “intimidated” by the SEC and reserved their legal rights. Both Neuralink and the SEC have yet to comment publicly on the investigation.
Separately, Musk has gained significant political influence after spending over $250 million to support Donald Trump’s presidential bid. Trump, in turn, has appointed Musk to a government overhaul task force, potentially insulating Musk’s companies from regulatory scrutiny.
This latest SEC probe follows a federal judge’s November decision rejecting the SEC’s request to sanction Musk for failing to comply with court-ordered testimony regarding the Twitter acquisition. The outcome of the current investigation remains uncertain.
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