SEC Says Investorsโ Pre-IPO OpenAI and SpaceX Dreams Were Diverted to Personal Spending Spree
The U.S. Securities and Exchange Commission has alleged that investors who believed they were buying pre-IPO shares in OpenAI and SpaceX were instead funneled into a scheme that diverted money to personal expenses, including strip clubs, luxury retail, and online shopping. The case underscores the persistent risks in private-market investing, where scarcity, brand-name hype, and limited transparency can leave even sophisticated buyers exposed to fraud.
