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Renata Cassiano Alvarez, the 2025 Visiting Artist in Residence at Laumeier Sculpture Park, works predominantly in clay, focusing on process to develop an intimate and collaborative relationship with her chosen […]
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Elon Musk’s SpaceX has taken money directly from Chinese investors, according to previously sealed testimony, raising new questions about foreign ownership interests in one of the United States’ most important military contractors.
The recent testimony, coming from a SpaceX insider during a court case, marks the first time direct Chinese investment in the privately held company has been disclosed. While there is no prohibition on Chinese ownership in U.S. military contractors, such investment is heavily regulated and the issue is treated by the U.S. government as a significant national security concern.
“They obviously have Chinese investors to be honest,” Iqbaljit Kahlon, a major SpaceX investor, said in a deposition last year, adding that some are “directly on the cap table.” “Cap table” refers to the company’s capitalization table, which lists its shareholders.
Kahlon’s testimony does not reveal the scope of Chinese investment in SpaceX or the identities of the investors. Kahlon has long been close with the company’s leadership and runs his own firm that acts as a middleman for wealthy investors looking to buy shares of SpaceX.
SpaceX keeps its full ownership structure secret. It was previously reported that some Chinese investors had bought indirect stakes in SpaceX, investing in middleman funds that in turn owned shares in the rocket company. The new testimony describes direct investments that suggest a closer relationship with SpaceX.
SpaceX has thrived as it snaps up sensitive U.S. government contracts, from building spy satellites for the Pentagon to launching spacecraft for NASA. U.S. embassies and the White House have connected to the company’s Starlink internet service too. Musk’s roughly 42% stake in the company is worth an estimated $168 billion. If he owned nothing else, he’d be one of the 10 richest people in the world.
National security law experts said federal officials would likely be deeply interested in understanding the direct Chinese investment in SpaceX. Whether there was cause for concern would depend on the details, they said, but the U.S. government has asserted that China has a systematic strategy of using investments in sensitive industries to conduct espionage.
If the investors got access to nonpublic information about the company — say, details on its contracts or supply chain — it could be useful to Chinese intelligence, said Sarah Bauerle Danzman, an Indiana University professor who has worked for the State Department scrutinizing foreign investments. That “would create huge risks that, if realized, would have huge consequences for national security,” she said.
SpaceX did not respond to questions for this story. Kahlon declined to comment.
The new court records come from litigation in Delaware between Kahlon and another investor. The testimony was sealed until ProPublica, with the assistance of lawyers at the Reporters Committee for Freedom of the Press and the law firm Shaw Keller, moved in the spring to make it public. SpaceX fought the effort, but a judge ruled that some of the records must be released. Kahlon’s testimony was publicly filed this week.
Buying shares in SpaceX is much more difficult than buying a piece of a publicly traded company like Tesla or Microsoft. SpaceX has control over who can buy stakes in it, and the company’s investors fall into different categories. The most rarefied group is the direct investors, who actually own SpaceX shares. This group includes funds led by Kahlon, Peter Thiel and a handful of other venture capitalists with personal ties to Musk. Then there are the indirect investors, who effectively buy stakes in SpaceX through a middleman like Kahlon. (The indirect investors are actually buying into a fund run by the middleman, typically paying a hefty fee.) All previously known Chinese investors in SpaceX fell into the latter category.
This year, ProPublica reported on an unusual feature of SpaceX’s approach to investment from China. According to testimony from the Delaware case, the company allows Chinese investors to buy stakes in SpaceX so long as the money is routed through the Cayman Islands or other offshore secrecy hubs. Companies only have to proactively report Chinese investments to the government in limited circumstances, and there aren’t hard and fast rules for how much is too much.
After ProPublica’s report, House Democrats sent a letter to Defense Secretary Pete Hegseth raising alarms about the company’s “potential obfuscation.” “In light of the extreme sensitivity of SpaceX’s work for DoD and NASA, this lack of transparency raises serious questions,” they wrote. It’s unclear if any action was taken in response.
Kahlon has turned his access to SpaceX stock into a lucrative business. His investor list reads like an atlas of the world. The investors’ names are redacted in the recently unsealed document, but their addresses span from Chile to Malaysia. One is in Russia. At least two are in mainland China. One is in Qatar. (In one email to SpaceX’s chief financial officer, Kahlon said a Los Angeles-based fund had money from the Qatari royal family and was already invested in SpaceX.)
“You made a big fortune,” a China-based financier wrote to Kahlon four years ago. “Lol something like that. SpaceX has been the gift that keeps on giving,” Kahlon responded. “All thanks to you.”
Kahlon first met with SpaceX when it was a fledgling startup, according to court records. SpaceX’s CFO, Bret Johnsen, who’s been there for 14 years, testified that Kahlon “has been with the company in one form or fashion longer than I have.” Johnsen also testified that SpaceX has no formal policy about accepting investments from countries deemed adversaries by the U.S. government. But he said he asks fund managers to “stay away from Russian, Chinese, Iranian, North Korean ownership interest” because that could make it “more challenging to win government contracts.”
There are indications that by 2021, Kahlon was wary of raising funds from China. The U.S. government had grown increasingly concerned about Chinese investments in tech companies, and that June, Kahlon told an associate he was “being picky” with who he’d let buy into a new SpaceX opportunity. “Only people I want to have a relationship with long term. No one from mainland China,” Kahlon said.
But as he raced to assemble a pool of investors, those concerns appeared to fade away. By November 2021, Kahlon was personally raising money from China to buy SpaceX stakes. He told a Shanghai-based company that if it invested with him, it would get quarterly updates on SpaceX’s business development, “visits to SpaceX, and the opportunities to interview with Space X’s CFO,” court records show.
The Shanghai company ultimately sent Kahlon $50 million to invest in Musk’s business, according to court records. SpaceX had the deal canceled after the plan became public.
Do you have any information we should know about Elon Musk’s businesses? Justin Elliott can be reached by email at justin@propublica.org and by Signal or WhatsApp at 774-826-6240. Josh Kaplan can be reached by email at joshua.kaplan@propublica.org and by Signal or WhatsApp at 734-834-9383.
Alex Mierjeski contributed research.
ProPublica is a nonprofit newsroom that investigates abuses of power. Sign up for Dispatches, a newsletter that spotlights wrongdoing around the country, to receive our stories in your inbox every week.
A former Chicago police officer facing trial for perjury and forgery has admitted he lied under oath dozens of times when he used an audacious alibi to get out of numerous speeding tickets and other traffic violations. Over more than a decade, he repeatedly blamed an ex-girlfriend for stealing his car and racking up the tickets — and each time, the story was bogus.
Jeffrey Kriv, one of Chicago’s most prolific drunk-driving enforcers during his more than 25 years as a cop, was sentenced to 18 months’ probation and ordered to pay $4,515 in restitution after pleading guilty last week to a lesser charge of felony theft. A plea agreement with prosecutors in Cook County, where Chicago is located, allowed Kriv to avoid jail time and ended the criminal case against him, but the implications of his actions go far beyond his own case.
A ProPublica analysis of court and police records has found that prosecutors have dropped at least 92 traffic and criminal cases that were based on arrests Kriv made and tickets he wrote. Most of the cases that were dismissed involved drunk and dangerous driving. Defense attorneys in those cases have cited Kriv’s perjury case and his credibility issue.
ProPublica and the Chicago Tribune previously detailed Kriv’s history of alleged misconduct as an officer, including that he’d been investigated at least 26 times over allegations of dishonesty for falsifying records, making false arrests and other matters. He was the subject of nearly 100 complaints from citizens and fellow officers in his career; most officers face far fewer.
Kriv denied the allegations in many of those cases and blamed others on how often he made stops and arrests. In the end, many of the investigations could not be pursued because his accusers did not sign formal complaints, and some complaints, including those that involved allegations of dishonesty, were not sustained by police oversight officials. In other cases, oversight officials found Kriv responsible for the misconduct.
He retired in 2023, just before prosecutors charged him.
Kriv’s plea deal was filed in Cook County court on Sept. 24, about a week before his case was scheduled to go to trial. Prosecutors for the Cook County state’s attorney’s office told ProPublica this week that Kriv had 56 of his own traffic tickets dismissed after providing false testimony to judges. That’s more than the 44 tickets that prosecutors had previously indicated in court records. The fines for those tickets would have been $4,515, the amount he was ordered to pay in restitution.
Addressing the fallout from Kriv’s perjury case on other court cases built on his policing, the state’s attorney’s office said it dropped pending cases against individuals who Kriv had arrested or ticketed because it could not proceed without his testimony.
“We could not call him as a witness due to the false statements he previously made in order to have his own personal tickets dismissed,” the office wrote in response to questions from ProPublica. One case was dismissed as recently as August, records show. Prosecutors said there are no pending cases in which Kriv’s testimony is needed.
The state’s attorney’s office said that, going forward, any claims from individuals who had been convicted in Kriv-involved cases will be “carefully reviewed.” There also are defendants who have not shown up in court and have warrants out for their arrests, so their cases could be called again.
“Our priority is to uphold our legal and ethical responsibilities while ensuring fairness,” the office said.
Under the plea agreement, Kriv admitted that he repeatedly blamed a girlfriend for stealing his BMW to get his tickets dismissed. “Well, that morning, I broke up with my girlfriend and she stole my car,” Kriv told one judge. He repeated similar stories again and again to get out of tickets for speeding, parking and red light camera violations involving his personal vehicles. Kriv also provided fraudulent police reports of car thefts as evidence. The judges then dismissed the tickets.
Kriv had been charged with four counts of perjury and five counts of forgery, all of them felonies. Each of those offenses would have been punishable by up to five years in prison.
Kriv’s attorney, Tim Grace, told ProPublica that he and Kriv would not comment.
The executive director of the Policemen’s Annuity and Benefit Fund of Chicago said the pension board will meet to decide if Kriv can continue to collect his pension benefits, given the felony conviction. Illinois law prohibits officers who are convicted of felonies related to their service from receiving pension benefits. Kriv’s pension payment is more than $6,000 a month.
In court last year, Kriv told a ProPublica reporter that he was innocent. “I am going to fight it,” he said at the time. “I don’t plan on taking any plea.” He complained that people accused of carjacking and gun offenses get probation, and he criticized prosecutors for treating him like a criminal. “I’m worse than a carjacker, allegedly,” he said.
He also said “it’s a shame” and “it’s terrible” that prosecutors have dropped cases against alleged drunken drivers and others because of concerns about his credibility. He said he wanted to testify in those cases and said prosecutors had sidelined him prematurely.
“You know how the system is: You are guilty until proven innocent,” he said.
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