The U.S. Securities and Exchange Commission (SEC) has reopened its investigation into Elon Musk’s neurotechnology company, Neuralink, according to a letter shared by Musk on X (formerly Twitter). This renewed scrutiny comes alongside a separate SEC demand for a settlement related to Musk’s acquisition of Twitter.
A December 12th letter from Musk’s attorney, Alex Spiro, addressed to outgoing SEC Chair Gary Gensler, revealed the reopened Neuralink investigation. The letter also disclosed a 48-hour deadline imposed by the SEC for Musk to agree to a monetary settlement or potentially face charges related to the probe into his $44 billion Twitter acquisition. The specific settlement amount remains undisclosed.
This latest development adds another chapter to Musk’s ongoing disputes with the SEC. Last year, four lawmakers urged the commission to investigate potential securities fraud by Musk, alleging he misled investors regarding the safety of Neuralink’s brain implant technology. The likelihood of the SEC’s success in any action against Musk remains uncertain.
Musk’s influence is substantial, stemming from his leadership of Tesla and SpaceX, and his significant financial contribution to Donald Trump’s successful presidential campaign. This has raised concerns about potential insulation from regulatory oversight and enforcement for his companies. Furthermore, Trump’s appointment of Musk to a government overhaul task force adds another layer of complexity to the situation.
In the letter, Spiro asserted that he and Musk would not be intimidated by the SEC and maintained their legal rights. Both the SEC and Neuralink have yet to provide official comment on these recent developments.
This renewed scrutiny follows a November ruling by a federal judge who rejected the SEC’s request to sanction Musk for failing to comply with a court order to testify in the Twitter takeover probe. The SEC had previously sued Musk in 2018 over his tweets about taking Tesla private, resulting in a $20 million settlement and Musk stepping down as Tesla’s chairman. This settlement also included an agreement for Tesla lawyers to pre-approve some of Musk’s public statements. The current situation underscores the continuing tension between Elon Musk and the SEC.
