The US Securities and Trade Fee (SEC) has reopened its investigation into Neuralink, Elon Musk’s brain-implant firm, alongside a probe into Musk’s acquisition of Twitter, now rebranded as X.
A letter from Musk’s lawyer, Alex Spiro, disclosed the event on Thursday (December 12), elevating questions in regards to the ongoing authorized disputes between Musk and the SEC, in keeping with a Reuters report.
The letter, addressed to outgoing SEC Chair Gary Gensler, outlines the reopening of the Neuralink investigation and a settlement demand relating to the Twitter takeover, which occurred in 2022.
The SEC has reportedly issued Musk a 48 hour deadline to simply accept a settlement supply or face enforcement motion.
Particulars in regards to the settlement quantity haven’t been disclosed, and the SEC has but to touch upon the matter, citing its confidentiality coverage relating to investigations.
Musk contentious historical past with the SEC
The SEC’s investigation into Neuralink provides one other layer to Musk’s longstanding conflicts with the company.
Whereas the precise nature of the Neuralink probe stays unclear, Musk’s acquisition of Twitter over two years in the past has been underneath scrutiny as a result of timing and disclosure of his inventory purchases.
Musk started buying Twitter shares in early 2022, finally reaching a 9 % stake earlier than asserting plans to purchase the platform outright for US$44 billion.
The letter accuses the SEC of harassment, referencing prior authorized battles between Musk and the fee.
In 2018, Musk confronted a lawsuit from the SEC over a tweet claiming he had funding secured to take Tesla non-public.
That case was resolved with a US$20 million positive; Musk additionally needed to step down as Tesla’s chairman, and Tesla attorneys have been required to evaluation a few of his public statements.
In his letter to the SEC, Spiro criticizes the federal government physique’s actions, questioning the motivation behind the investigations and alleging that they have been politically influenced. The lawyer additionally demanded transparency about whether or not Gensler or different authorities entities have been directing what Spiro described as a marketing campaign in opposition to Musk.
Neuralink, which was based by Musk in 2016, goals to develop brain-computer interfaces with potential purposes in medical remedy and human enhancement.
The corporate has confronted challenges, together with public and authorized scrutiny over its analysis practices.
In 2023, the Physicians Committee for Accountable Medication and 4 US lawmakers urged the SEC to research Neuralink for doable securities fraud, alleging that the corporate made deceptive claims about its know-how.
Musk has ceaselessly expressed disdain for the SEC up to now. Following the publication of Spiro’s letter, Musk posted a picture mocking Gensler on X, accompanied by a dismissive caption.
Political implications
The investigation comes at an important time for Musk as his affect expands.
He’s a member of a activity power established by President-elect Donald Trump to supervise authorities reforms, and spent important assets supporting Trump’s political marketing campaign.
In November, a federal decide denied an SEC request to impose sanctions on Musk for failing to adjust to court-ordered testimony associated to the Twitter acquisition probe. Presently the result of the reopened Neuralink investigation and the continued Twitter acquisition probe stays unsure.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
