SpaceX faces opposition to Starlink expansion from Ukrainian group concerned about Musk ties to Russia
The Starlink logo is seen on a mobile device with an grahpic illustration of planet Earth in this illustration photo in Warsaw, Poland on 21 September, 2022.
STR | Nurphoto | Getty Images
SpaceX’s effort to put an additional 22,488 satellites into low-earth orbit is facing a formal objection from a Ukrainian-American nonprofit, which says it’s concerned about CEO Elon Musk’s “contacts with Russia and the alleged use of his Starlink system by Russian forces in Ukraine.”
In a petition to deny and motion for stay filed with the Federal Communications Commission on Wednesday, the Ukrainian Congress Committee of America (UCCA) also cited negative environmental impacts of SpaceX launches in Texas and Musk’s potential conflicts of interest due to his work with the incoming Trump administration.
SpaceX’s Starlink system has been linked to Ukraine since terminals arrived there shortly after Russian troops invaded the neighboring country in early 2022. The following year, the Pentagon agreed to purchase Starlink satellite internet terminals for use in Ukraine’s ongoing defense against Russia.
However, in September 2023, Americans of Ukrainian descent rebuked the SpaceX CEO after it emerged that he had thwarted a major attack on the Russian navy. Musk said at the time that he had told his engineers not to turn on SpaceX’s Starlink satellite network over Crimea in order to prevent a planned attack by Ukraine on the Black Sea fleet in 2022.
“There is a necessity to determine if Starlink has been used to help a foreign adversary,” UCCA President Michael Sawkiw, Jr., told CNBC, regarding the group’s decision to file a petition and motion to the FCC this week. “If yes, this is not in the national security interest of Ukrainian-Americans, or of the entire country.”
The UCCA isn’t the only group concerned about Musk’s relationship with the Kremlin.
The Wall Street Journal reported in October that Musk had engaged in a series of “secret conversations” with Russian President Vladimir Putin leading up to the 2024 presidential election. Members of Congress and NASA Administrator Bill Nelson have called for an investigation into those contacts.
A month before the Journal story, Newsweek and others reported that Russia had installed Starlink terminals in its Iranian-designed Shahed drones, used in their military offense in Ukraine. Starlink didn’t provide a comment for the story, but earlier in the year, in February, Musk said in a social media post that news reports suggesting Starlink was selling terminals to Russia were “categorically false,” and that “to the best of our knowledge, no Starlinks have been sold directly or indirectly to Russia.”
Sawkiw said his group advocates for causes of concern to an estimated 2 million Americans of Ukrainian descent living in the U.S. today, many of whom arrived after the war began in February 2022.
The Starlink satellites referred to in the petition would enable the company to deliver internet services to more destinations around the world as part of its Gen2 NGSO Satellite System.
Musk didn’t respond to a request for comment, nor did Tim Hughes, senior vice president for global business and government affairs.
Potential conflicts of interest
If Sawkiw’s group succeeds on legal merits, the FCC may have to pause approvals for SpaceX, leaving time for an environmental review, and for a plan to resolve any conflicts of interest arising from Musk’s new role with the forthcoming Department of Government Efficiency (DOGE).
DOGE is expected to function as a federal advisory committee that will have influence over regulations, government spending and personnel. The group could potentially recommend major changes at the FCC and influence the oversight of SpaceX and other Musk-led companies.
“Musk’s conflicts run the full gamut from financial to objectivity,” UCCA wrote in the petition. “His companies stand to financially benefit both from receiving government contracts and from actions taken by the federal government, including the FCC. Placing Musk at the head of DOGE is equivalent to allowing a fox to guard the henhouse.”
The motion asks the FCC to determine how Musk will comply with the Federal Advisory Committee Act, given his role with DOGE, before it authorizes any further SpaceX requests.
Regarding environmental concerns, UCCA’s lead regulatory counsel Arthur Belendiuk wrote in the filings to the FCC that the SpaceX launch facility in Boca Chica, Texas is “a biologically diverse and essential habitat area for many species, including wildlife protected under the Endangered Species Act.” Referencing prior incidents, he added that, “Rocket launches in this area create the real risk of fire and debris being ejected onto adjacent environmentally protected lands.”
After reports that vibrations and noise from SpaceX launches led to the destruction of nine nests of an endangered bird species in the area, Musk wrote in a post on X in July, “To make up for this heinous crime, I will refrain from having omelette for a week.”
Belendiuk wrote in the petition that instead of remedying the damage caused by SpaceX launches, Musk “responds to the legitimate concerns of local environmental groups with sarcasm and mockery.”
The UCCA had filed comments in April against SpaceX in a separate FCC proceeding pertaining to a request by the company to access additional spectrum for its Starlink network.
Republican FCC Commissioner Brendan Carr said at the time that the group’s comments were “procedurally improper and substantively meritless,” and that it effectively wanted “the government to break the law by weaponizing it” against Musk.
Now, President-elect Donald Trump has nominated Carr to lead the FCC in his second administration. Carr’s office didn’t respond to a request for comment.
Belendiuk told CNBC that his group’s “focus isn’t solely on Musk or SpaceX.”
The group took legal action to take Radio Sputnik, which broadcast Russian government propaganda, off the public airwaves in the U.S., Beledniuk said, and is “actively engaged in discussions with chipmakers whose sanctioned products have been found in Russian weapons systems.”
WATCH: It’s impossible for DOGE to cut government spending without touching the defense budget
Technology
Bitcoin jumps to new record above $109,000 as traders cheer Trump inauguration, meme coins
Jakub Porzycki | Nurphoto | Getty Images
Bitcoin hit a new all-time high overnight after the incoming first couple launched a pair of meme coins and as traders await the inauguration of incoming President Donald Trump.
On Monday the flagship cryptocurrency was last higher by nearly 1% at $106,622.54, according to Coin Metrics. Earlier, it rose as high as $109,350.72, after briefly dipping below the $100,000 mark Sunday.
Bitcoin hits a new record ahead of Trump inauguration
Over the weekend, Trump launched the “Official Trump” meme coin, which has risen to a $10.6 billion market cap and surged more than 659% since Friday night, according to data from CoinGecko and Coinbase. On Monday it was down about 27% from its record price of around $73 a coin, after returning First Lady Melania Trump launched her own “Melania” meme coin Sunday — nearly halving the Trump coin in value at one point.
Melania Meme, which began trading Sunday evening, has hit a $1.3 billion market cap and 14% price increase since its launch. It has attracted $7.3 billion in trading volumes over the last day, compared to the Trump meme’s $31 billion.
Although meme coins are considered the riskiest corner of the already risky cryptocurrency market, the Trumps’ coin launches over the weekend gave traders further conviction that the incoming administration will be positive for the industry.
“The move highlights President Trump’s embrace of crypto and belief that Americans should have the freedom to operate in the emerging asset class,” said Joel Kruger, market strategist at LMAX.
“There is a logic here that would suggest that putting a stamp of approval on what could be perceived as the wildest of crypto assets, meme coins, is the best way to send a message of just how supportive the market should expect the administration to be when it comes to embracing crypto and making America a major player in the space.”
Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, echoed that sentiment, calling the meme drops net positive and “a sign he is very much in favor of new ideas [and] new markets.”
Bitcoin started gaining steam last week as speculation started to build that Trump might announce an executive order on crypto early in his new term. Gracy Chen, CEO crypto exchange Bitget, said that optimism is having a greater effect on its price.
“Rumors that cryptocurrency may be declared a national interest by the United States during the inauguration are having a positive effect on the price of bitcoin,” she told CNBC. “I don’t believe the rise in bitcoin’s price is due to the launch of new meme tokens. Rather … without the release of the Trump family tokens, bitcoin’s price would have grown more. Instead, capital shifted to new coins, limiting overall growth.”
The broader crypto market, as measured by the CoinDesk 20 index, fell 1% on Monday and has gained less than 1% since Saturday. The token tied to Solana is down more than 7% on Monday but up 15% since Saturday, benefitting from the Trump meme coin being launched on the popular Ethereum alternative network. Ether has lost 5% since Saturday.
Bitcoin’s new record opens the door to a possible upside extension to $130,000, LMAX’s Kruger added.
Technology
TSMC is confident its CHIPS Act funding will continue under Trump, says CFO Wendell Huang
TSMC Arizona’s first chip fab on November 7, 2024
Katie Tarasov
U.S. President-elect Donald Trump has accused Taiwan of “stealing” his country’s chip industry. But Taiwan’s biggest chip company is confident the Trump administration will continue funding its projects in the U.S.
Taiwan Semiconductor Manufacturing Co has been promised $6.6 billion under the Joe Biden administration’s CHIPS and Science ACT to help build three cutting-edge chip fabrication plants in Arizona as part of U.S. efforts to onshore chip manufacturing.
Speaking to CNBC’s Emily Tan in an exclusive interview, TSMC Chief Financial Officer Wendell Huang said the funding was expected to continue to roll in gradually under Trump as the fabrication plants pass construction and production milestones.
“As a matter of fact, in the fourth quarter, we already received the first batch of government support,” Haung said, revealing the contract chip manufacturer had got $1.5 billion in funds.
Following some production delays, the first fabrication plant in Arizona started producing advanced chips in the fourth quarter of last year, Huang said. He added that the construction of two plants in Arizona was on track, with the second expected to be operational in 2028.
TSMC’s first investment in Arizona was announced in May 2020, with the company’s total investment in the its three projects there eventually standing at over $65 billion.
Much of the investments were committed after the Biden administration signed the bipartisan CHIPS Act in August 2022, committing almost $53 billion to invest in the domestic semiconductor supply chain and counter China.
While the incoming President is also expected to make competition with China and onshoring manufacturing a priority in his second term, there has been debate as to whether Trump and the Republican-led House would re-examine the CHIPS Act.
During his campaign for the White House, Trump publicly criticized the bill and its price tag, arguing instead that tariffs were a more effective strategy to onshore chip manufacturing. The President-elect also accused Taiwan of “stealing” U.S. chip business.
However, industry experts have told CNBC that they expect Trump to leave the policy mostly intact due to its bipartisan support in Washington.
TSMC on Thursday reported record profit for the fourth quarter on strong demand for its AI chips, sending its shares up nearly 4%. Shares closed 1.36% higher on Friday.
In an earnings call following the esults, CEO and Chairman C.C. Wei highlighted TSMC’s “long-standing and good relationship” with the U.S. government and the commitment and support it has received on the federal, state and city levels.
“Let me assure you that we have a very frank and open communication with the current government and with the future one also,” he said in response to an investor question.
On Thursday, Wei also said that the company would not attend Trump’s inauguration as it prefers to keep a low profile.
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