The SEC has reopened its investigation into Elon Musk’s brain-chip venture Neuralink, escalating tensions between the billionaire entrepreneur and federal regulators. Musk disclosed the development by posting a Dec. 12 letter from his lawyer Alex Spiro to X, formerly Twitter.
According to Spiro’s letter, the SEC issued a settlement demand requiring Musk to pay an undisclosed sum or face multiple charges. The demand comes amid longstanding concerns over Neuralink, including allegations that Musk misled investors about the safety of its experimental implants.
Musk has a history of public disputes with the SEC, and this case is no exception. In the letter, Spiro dismissed the agency’s actions as intimidation, stating Musk would exercise his legal rights to challenge the allegations.
This legal skirmish comes as Musk’s political influence reaches new heights. After donating more than $250 million to President Donald Trump’s re-election campaign, Musk has joined a key task force aimed at reshaping the federal government. Observers believe his ventures, including Neuralink, could benefit from reduced regulatory oversight under Trump’s leadership.
The SEC and Neuralink have yet to respond to media inquiries about the investigation. Musk’s clashes with regulators are well-documented, from his 2018 Tesla settlement to his recent victory in avoiding sanctions related to X’s acquisition.
As Musk pushes forward with Neuralink’s ambitions, the SEC’s revived probe could become a defining moment for the entrepreneur who thrives on controversy.
