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SpaceX, the $350 billion pioneer in space launch and satellite internet, is a linchpin in U.S. national defense—launching classified Pentagon satellites and powering critical infrastructure. Yet, an investigation reveals Russian money has infiltrated its shareholder base through opaque investment schemes, flouting SpaceX’s unofficial ban on investors from adversarial nations like Russia. This isn’t just a financial anomaly; it’s a glaring security flaw in America’s tech fortress.

The Backdoor Investment Pipeline

SpaceX CFO Bret Johnsen testified in 2024 that the company avoids direct investments from Russia, China, Iran, and North Korea to safeguard its U.S. government contracts. But loopholes abound. Russian firms like United Traders and Finam use special-purpose vehicles (SPVs) to funnel money into SpaceX, masking investor identities. For instance, United Traders—holding SpaceX shares since 2015—offers stakes to Russians via IP-restricted portals, with Alex Markov, its former investment head, admitting:

"We do not offer investors direct participation... but they receive income from the growth of the company’s capitalization. We buy through counterparties who comply with U.S. regulators and SpaceX requirements."

Finam’s $10,000-minimum SpaceX offering, now waitlisted, routes investments through U.S.-based funds like Frontline One Capital and FinSight Ventures. These SPVs, as ProPublica noted, create a veneer of compliance while enabling indirect ownership—similar to tactics used by Chinese investors. The allure is clear: SpaceX’s valuation has skyrocketed from $12 billion in 2015, turning early stakes into goldmines.

The Sanctioned Middlemen and Their Silicon Valley Ties

At the heart of this web is Pavel Cherkashin, a U.S.-based asset manager. His firm, Mindrock Capital, co-manages Arctic SX—a SpaceX investment vehicle 90% owned by foreign nationals, per SEC filings. Cherkashin facilitated deals for Russian oligarchs, including Suleiman Kerimov, a Putin ally sanctioned by the U.S. in 2022. Kerimov’s SpaceX stake was moved before asset freezes, but Cherkashin’s GVA Capital faced a $215 million U.S. Treasury fine in June 2025 for managing Kerimov’s investments post-sanctions.

Cherkashin’s network is steeped in risk. He served on the board of ICOBOX, a firm sued by the SEC for illegal securities sales, alongside Russian banking and oil elites. Meanwhile, West Coast Equity Partners—co-founded by ex-Russian state executives—holds SpaceX shares, blurring lines between private enterprise and state influence.

Why This Threatens More Than Just SpaceX

This isn’t merely about shareholder registers; it’s about existential risks:
- National Security: SpaceX’s role in U.S. reconnaissance and missile warning systems means foreign access could compromise classified tech. House Democrats warned Defense Secretary Pete Hegseth in May 2025 that even the "perception of a conflict" is dangerous.
- Regulatory Gaps: SPVs exploit legal gray areas—U.S. law bans insider trading for public firms but not private ones, as Cherkashin’s partners bragged in Russian forums.
- Industry Ripple Effects: For developers and tech leaders, this highlights vulnerabilities in supply chain security. If SpaceX’s satellite or AI-driven launch tech is exposed, it could cascade to partners like Tesla or global internet infrastructure.

The fallout demands urgent scrutiny: tighter KYC checks for SPVs and reforms in how defense contractors vet indirect investors. As SpaceX rockets toward Mars, the real battle may be keeping its orbit free of adversarial shadows.

Source: Musk Watch