Musk's Neuralink Under SEC Scrutiny Amid Twitter Takeover Controversy

The SEC has reopened an investigation into Elon Musk's Neuralink following a controversial Twitter takeover. Musk's lawyer, Alex Spiro, disclosed a settlement deadline from the SEC, which challenges Musk over potential securities fraud concerning Neuralink. Musk's influence grows as he gains political traction with Donald Trump.

The U.S. Securities and Exchange Commission (SEC) has rekindled its investigation into Neuralink, a brain-chip startup founded by Elon Musk. This development was confirmed in a December 12 letter from Musk's attorney, Alex Spiro, to departing SEC Chair Gary Gensler, shared on social media platform X, formerly known as Twitter. The letter detailed a 48-hour settlement ultimatum issued by the SEC, threatening charges over allegations related to the $44 billion acquisition of Twitter.

Musk, renowned for his tussles with the SEC, was previously accused of potential securities fraud by four lawmakers. They claimed he misled investors about Neuralink's brain implant safety. Whether the SEC can make headway against Musk remains uncertain, particularly as he solidifies political influence after expending significant resources to support Donald Trump's political ambitions. Musk's enterprises, including Tesla and SpaceX, may enjoy regulatory protection under Trump's administration, bolstered by Musk's appointment to a governmental revamp task force.

In response to the SEC's renewed scrutiny, Spiro emphasized in the letter that Musk would not be 'intimidated' and preserved his legal rights. Meanwhile, a federal judge denied the SEC's sanctions request against Musk for not appearing in court regarding the Twitter takeover examination. Previously, in 2018, Musk settled a SEC lawsuit over his tweets about taking Tesla private by paying a $20 million fine and relinquishing his role as chairman, agreeing to pre-approval of certain tweets by Tesla's legal team.

(With inputs from agencies.)