- Gary Gensler strikes again as he reopens an investigation into Elon Musk’s company Neuralink while demanding the Tesla founder to accept a monetary payment or face numerous charges.
- Musk’s attorney, Alex Spiro, has pledged that they would never be intimidated by the “tactics and the misguided schemes” of the Commission.
Weeks after we reported on the step-down notice of the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, and a little over a month before his official resignation, the Commission served a fresh notice to Elon Musk regarding its preparation to reopen an investigation into his neurotechnology company, Neuralink. Responding to this, Musk wrote, “Oh Gary, how could you do this to me?”
Details of the Story
According to a letter written by Musk’s lawyer, Alex Spiro, the Commission staff issued a settlement demand that the X (Twitter) owner accept a monetary payment or face charges on numerous counts. Musk was required to agree to the terms within 48 hours. Meanwhile, the title of the letter, as analyzed by CNF, reads: In the Matter of Certain Purchases, Sales, and Disclosure of Twitter Shares (SF-4519).
According to Spiro, the Commission has consistently harassed Musk for six years through targeted investigations. He also disclosed that a staff of the SEC once subpoenaed him (Alex Spiro) for testimony. Fascinatingly, the Commission threatened him to send a process server if he did not cooperate. However, he vehemently refused. In the letter, Spiro confirmed that the Commission had reopened an investigation into Neuralink this week.
In concluding the letter addressed to Gensler, Spiro highlighted that the Commission appears to be engaging in an improperly motivated campaign against Musk, individuals associated with him, and companies associated with him instead of seeking the truth. He also demanded to know who was behind these actions—whether the SEC chair or the Whitehouse. Regardless, he assured them that “these tactics and misguided schemes would not intimidate” them.
Oh Gary, how could you do this to me? pic.twitter.com/OoooQI77ZS— Elon Musk (@elonmusk) December 12, 2024
Investigation into Neuralink
In 2023, US lawmakers asked the SEC to investigate whether Musk committed securities fraud by misleading investors on the safety of the brain implant that Neuralink was developing. According to reports, the request was made by “Democratic House Reps. Earl Blumenauer of Oregon, Jim McGovern of Massachusetts, and Barbara Lee and Tony Cardenas of California.”
Musk’s company allegedly conducted a terminal experiment on three monkeys. However, the lawsuit discloses that they did not recover. Additionally, Neuralink was accused of euthanizing 12 animals as a result of an issue with the company’s implant. Meanwhile, Musk clarified that no monkey died as a result of the Neuralink implant.
First, our early implants, to minimize risk to healthy monkeys, we chose terminal monkeys (close to death already).
Musk was also charged by the SEC in 2018 for making a series of misleading tweets about a potential transaction to take Tesla private. At that time, the co-director of the agency’s Enforcement Division highlighted that one of the most critical obligations of a CEO is to provide truthful and accurate information.
SEC’s enforcement actions have been criticized by several individuals, including Ripple CEO Brad Garlinghouse. Meanwhile, this is expected to come to an end with the appointment of Paul Atkins as the new Chair, as earlier disclosed by CNF. According to lawyers at US legal firm Anderson PC, the new administration could transform the Commission to resort to less aggressive tactics to resolve issues.
Under his (Paul Atkins) leadership, the SEC may move away from aggressive tactics that prioritize headline-grabbing penalties over substantive outcomes.
