Legislative Call for SEC Inquiry
Four U.S. legislators have urged the Securities and Exchange Commission (SEC) to investigate Elon Musk for potential securities fraud. The lawmakers, Democratic House Representatives Earl Blumenauer, Jim McGovern, Barbara Lee, and Tony Cardenas, raised concerns about Musk’s alleged misleading statements regarding the safety of Neuralink’s brain implant.
Neuralink Human Trials on the Horizon
The call for an inquiry comes as Neuralink, Musk’s venture, gears up to conduct its first human trials of the brain implant—a significant step for the company’s goal of aiding patients with paralysis and neurological conditions.
The legislators pointed to veterinary records from Neuralink’s monkey experiments, revealing adverse effects such as paralysis, seizures, and brain swelling. Shockingly, the letter alleges that at least 12 healthy monkeys were euthanized due to issues with Neuralink’s implants.
Despite these findings, Musk seemingly played down investor worries by asserting on his social media platform, X, that “no monkey has died as a result of a Neuralink implant.” He explained that the company intentionally selected “terminal” monkeys to minimize risks to healthy ones.
Neuralink, however, has yet to respond to requests for comments on the SEC letter.
The legislators argue that their scrutiny is rooted in evidence linking animal deaths to the safety and marketability of Neuralink’s brain-computer interface. Musk’s statement denying any connection, they contend, might have violated SEC rules.
Previous reports revealed concerns within Neuralink, with employees alleging rushed and flawed surgeries on various animals, leading to more deaths than necessary. The urgency was reportedly driven by Musk, who pressured staff to expedite the safety data needed for FDA approval of human testing.
In May, Neuralink announced FDA clearance for its inaugural human clinical trial without disclosing specific study details.
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