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    US admiral to retire amid military strikes in Caribbean and tensions with Venezuela

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    Amid escalating tensions with Venezuela and US military strikes on suspected drug smugglers in the Caribbean, the US admiral who commands military forces in Latin America will step down at the end of this year, defense secretary Pete Hegseth announced on social media.The admiral, Alvin Holsey, just took over the US military’s southern command late last year for a position that normally lasts three years.A source told Reuters that there had been tension between him and Hegseth as well as questions about whether he would be fired in the days leading up to the announcement.The New York Times reports that an unnamed US official said that Holsey “had raised concerns about the mission and the attacks on the alleged drug boats”.Hegseth, in his social media post, did not disclose the reason for Holsey’s plan “to retire at year’s end”.The post noted that Holsey began his career “through the NROTC program at Morehouse College in 1988”. Morehouse is a private, historically Black college in Atlanta.In February, Donald Trump abruptly fired the air force general CQ Brown Jr as chair of the joint chiefs of staff, sidelining a history-making Black fighter pilot and respected officer as part of a campaign to purge the military of leaders who support diversity and equity in the ranks.skip past newsletter promotionafter newsletter promotionIn 2021, Holsey recorded a public service announcement urging Black Americans to get the Covid-19 vaccine. More

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      Trump confirms that he authorized covert CIA operations in Venezuela

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      Donald Trump confirmed reports on Wednesday that he authorized the CIA to conduct covert operations in Venezuela, marking a sharp escalation in US efforts to pressure President Nicolás Maduro’s regime.The New York Times first reported the classified directive, citing US officials familiar with the decision.The US president said he authorized the action for two main reasons.First, he claimed Venezuela had been releasing large numbers of prisoners, including individuals from mental health facilities, into the United States, often crossing the border due to what he described as an open border policy. Trump did not specify which border they were crossing.The second reason, he said, was the large amount of drugs entering the US from Venezuela, much of it trafficked by sea.skip past newsletter promotionafter newsletter promotion“I think Venezuela is feeling heat,” Trump added, but declined to answer when asked if the CIA had the authority to execute Maduro. More

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      Senate Republicans vote against check on Trump using deadly force against cartels

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      Senate Republicans voted down legislation Wednesday that would have put a check on Donald Trump’s ability to use deadly military force against drug cartels after Democrats tried to counter the administration’s extraordinary assertion of presidential war powers to destroy vessels in the Caribbean.The vote fell mostly along party lines, 48-51, with two Republicans, Rand Paul and Lisa Murkowski, voting in favor and the Democrat John Fetterman voting against.It was the first vote in Congress on Trump’s military campaign, which according to the White House has so far destroyed four vessels, killed at least 21 people and stopped narcotics from reaching the US. The war powers resolution would have required the president to seek authorization from Congress before further military strikes on the cartels.The Trump administration has asserted that drug traffickers are armed combatants threatening the United States, creating justification to use military force. But that assertion has been met with some unease on Capitol Hill.Some Republicans are asking the White House for more clarification on its legal justification and specifics on how the strikes are conducted, while Democrats insist they are violations of US and international law. It’s a clash that could redefine how the world’s most powerful military uses lethal force and set the tone for future global conflict.The White House had indicated Trump would veto the legislation, and even though the Senate vote failed, it gave lawmakers an opportunity to go on the record with their objections to Trump’s declaration that the US is in “armed conflict” with drug cartels.“It sends a message when a significant number of legislators say: ‘Hey, this is a bad idea,’” said the senator Tim Kaine, a Virginia Democrat who pushed the resolution alongside Adam Schiff, a Democrat of California.Wednesday’s vote was brought under the War Powers Resolution of 1973, which was intended to reassert congressional power over the declaration of war.“Congress must not allow the executive branch to become judge, jury and executioner,” Paul, a Kentucky Republican who has long pushed for greater congressional oversight of war powers, said during a floor speech.Paul was the only Republican to publicly speak in favor of the resolution before the vote, but a number of Republican senators have questioned the strikes on vessels and said they are not receiving enough information from the administration.The senator Kevin Cramer, a North Dakota Republican, acknowledged “there may be some concern” in the Republican conference about the strikes. However, Republican leaders stridently argued against the resolution on the Senate floor Wednesday, calling it a political ploy from Democrats.“People were attacking our country by bringing in poisonous substances to deposit into our country that would have killed Americans,” said the senator Jim Risch, the chair of the Senate foreign relations committee. “Fortunately most of those drugs are now at the bottom of the ocean.”Risch thanked Trump for his actions and added that he hoped the military strikes would continue.Members of the Senate armed services committee received a classified briefing last week on the strikes, and Cramer said he was “comfortable with at least the plausibility of their legal argument”. But, he added, no one representing intelligence agencies or the military command structure for Central and South America was present for the briefing.“I’d be more comfortable defending the administration if they shared the information,” he said.Kaine also said the briefing did not include any information on why the military chose to destroy the vessels rather than interdict them or get into the specifics of how the military was so confident the vessels were carrying drugs.“Maybe they were engaged in human trafficking, or maybe it was the wrong ship,” Schiff said. “We just have little or no information about who was onboard these ships or what intelligence was used or what the rationale was and how certain we could be that everyone on that ship deserved to die.”The Democrats also said the administration has told them it is adding cartels to a list of organizations deemed “narco-terrorists” that are targets for military strikes, but it has not shown the lawmakers a complete list.“The slow erosion of congressional oversight is not an abstract debate about process,” the senator Jack Reed, the top Democrat on the Senate armed services committee, said in a floor speech. “It is a real and present threat to our democracy.”The secretary of state Marco Rubio visited the Republican conference for lunch Wednesday to emphasize to senators that they should vote against the legislation. He told the senators that the administration was treating cartels like governmental entities because they had seized control of large portions of some Caribbean nations, according to the senator John Hoeven of North Dakota.Rubio told reporters at the Capitol: “These drug-trafficking organizations are a direct threat to the safety and security of the United States to unleash violence and criminality on our streets, fueled by the drugs and the drug profits that they make. … And the president, as the commander in chief, has an obligation to keep our country safe.”Still, Democrats said the recent buildup of US maritime forces in the Caribbean was a sign of shifting US priorities and tactics that could have grave repercussions. They worried that further military strikes could set off a conflict with Venezuela and argued that Congress should be actively deliberating whenever American troops are sent to war.Schiff said, “This is the kind of thing that leads a country, unexpectedly and unintentionally, into war.” More

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      NHS could pay 25% more for medicines under plan to end row with drugmakers and Trump

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      Ministers are preparing to raise the amount the NHS pays pharmaceutical firms for medicines by up to 25% after weeks of intensive talks with the Donald Trump administration and drugmakers.Labour has drawn up fresh proposals to end a standoff with the industry over drug pricing, including changing the cost-effectiveness thresholds under which new medications are assessed for use on the NHS, according to industry sources.The row has been cited as one of the reasons why big companies in the sector, including MSD (known as Merck in the US) and AstraZeneca, have cancelled or paused investments in the UK in recent weeks, while ramping up investments in the US.The Department of Health and Social Care is in a standoff with the Treasury and No 10 on how to fund the deal, with Downing Street resisting pressure to commit new funds for medicines in next month’s budget.The Liberal Democrats immediately criticised the move, first reported by Politico, asking how much it would cost and whether it would lead to cuts elsewhere in the NHS.The science secretary, Patrick Vallance, has publicly acknowledged that the UK’s spending on new medicines needs to rise from 9% of overall NHS spend, which is below drug spending in the US and many other European countries.The main element of the plan is thought to include raising the National Institute for Health and Care Excellence (Nice) cost-effectiveness threshold by 25%, which has been unchanged since 1999. Under current rules, Nice considers a medicine costing between £20,000 and £30,000 for every extra year of good-quality life it provides a patient to represent good value for money for the NHS.The Association of the British Pharmaceutical Industry on Tuesday reiterated its call for “urgent action” on drug pricing, saying the Nice threshold should be increased as soon as possible in line with inflation to between £40,000 and £50,000, and index-linked thereafter. Making this change would, over time, lead to a greater share of the NHS budget being allocated to medicines, and additional funding would be needed to support this.In talks over the summer, Wes Streeting, the health secretary, proposed a deal that would save the pharmaceutical industry £1bn over three years, with billions more promised over the coming decade.But the industry argued that it was forecast to make repayments totalling £13.5bn over the same period and has been demanding about £2.5bn a year extra.A government source said ministers were prepared to spend more on medicines as they increasingly became more ​innovative and preventive. They cited the example of weight loss injections – which are forecast to save the NHS billions of pounds in treating obesity and associated health problems – and trials for cancer-preventing vaccines.The patient-led campaign group Just Treatment called it “deeply troubling news for patients and the NHS”, adding: “We are at risk of importing America’s disastrous drug pricing crisis.” It called on the government to “take steps to establish a system for developing and manufacturing medicines that puts patients first”.The NHS spent £20.6bn on medicines and medical devices in 2023-24, up from £19.2bn the year before.Trump has put pressure on pharma companies to lower their drug prices in the US and increase them elsewhere, accusing other countries of “freeloading” on high US prices. Nearly two weeks ago, he threatened to impose 100% tariffs on pharmaceutical imports from 1 October to ramp up the pressure, although these did not materialise.In response to pressure from Trump, Pfizer and several other US and European companies, including the UK’s biggest drugmaker, AstraZeneca, have started to cut their prices in the US and to sell directly to patients to cut out costly middlemen.skip past newsletter promotionafter newsletter promotionIn return for reducing its prices by up to 85%, Pfizer won a three-year reprieve from tariffs last week, which was seen as a bellwether for the rest of the sector.Last week, Varun Chandra, Starmer’s main business adviser, flew to Washington DC for talks with senior US officials and drug companies, the latest in a series of visits to try to hammer out a deal on pricing and tariffs.A UK government spokesperson said: “We’ve secured a landmark economic partnership with the US that includes working together on pharmaceutical exports from the UK whilst improving conditions for pharmaceutical companies here.“We’re now in advanced discussions with the US administration to secure the best outcome for the UK, reflecting our strong relationship and the opportunities from close partnership with our pharmaceutical industry.”However, the Lib Dem health and social care spokesperson, Helen Morgan, said: “It beggars belief that the government is bending to a bullying US president having told patients for years that life-saving new drugs are unaffordable.“Ministers must come clean about how much this move will cost and whether it will be funded by cuts elsewhere in the NHS. They should also lay their plans before parliament without delay so they can be properly scrutinised. It increasingly feels like this government puts the whims of Trump before everything else – even our precious NHS.”The pharma sector’s negotiations with the UK government over drug pricing under a voluntary scheme broke down without an agreement in late August. Since then, MSD has abandoned plans for a £1bn research centre in London and AstraZeneca and New York-based Eli Lilly have paused projects, taking total pharma investments that are on hold or cancelled to nearly £2bn since the start of this year.One industry source said: “We are relieved to see a recognisable change in sentiment and language from August.” More

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      Trump says drug cartels operating in the Caribbean are ‘unlawful combatants’

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      Donald Trump has said that drug cartels operating in the Caribbean are “unlawful combatants” and says the United States is now in a “non-international armed conflict”, according to a White House memo obtained by the Associated Press on Thursday.A US official familiar with the matter who was not authorized to comment publicly told the AP that Congress was notified about the designation by Pentagon officials on Wednesday.The story was first reported by the New York Times.It comes after the US military conducted strikes on three boats in the Caribbean Sea last month that killed 17 people and triggered widespread international outrage, especially in Central and South America.The administration is required by law to report to Congress the US government’s use of armed forces. The Times reports that the administration’s memo cites that statute and also repeats its past justifications that the strikes were conducted in self-defense and accusing the boats of containing members of a Venezuelan drug gang. But the memo also reportedly goes further and frames the US military’s attacks on the boats to be part of a sustained conflict.The memo also reportedly states that Trump has deemed cartels engaged in smuggling drugs as “non-state armed groups” whose actions “constitute an armed attack against the United States”.The Trump administration has been increasing its military presence in the Caribbean in recent months, deploying a number of ships and military personnel to Puerto Rico. It has justified the military action as a necessary escalation to stem the flow of drugs into the US. But some lawmakers as well as human rights groups have questioned the legality of the attacks.The notice to Congress is an aggressive escalation in the US government’s attempts to stop the flow of narcotics. The US government’s drug war in recent years has increasingly focused on political targets, and this latest escalation may be seen as an attempt by the administration to further place pressure on the Venezuelan government.Earlier this year, the Trump administration determined several criminal groups to be “terrorist” organizations. The designation by the administration included a number of Mexican cartels, the MS-13 gang, the Venezuelan gang Tren de Aragua and the Venezuelan so-called Cartel de los Soles.For years, the US government has accused the Venezuelan government of Nicolás Maduro of being involved in drug trafficking. The Trump administration earlier this year accused Maduro of directing the activities of Tren de Aragua, and used it as a justification to expel hundreds of immigrants to a notorious Salvadorian prison under the Alien Enemies Act.Intelligence assessments have determined there is little proof of Maduro’s links to Tren de Aragua.Maduro and members of his cabinet and military also stand accused by the US of running the Cartel de los Soles and seeking to traffic cocaine to the US. The infrastructure of the cartel has been disputed, with drug trafficking analysts and experts saying that the Cartel de los Soles is a loose network of lower-ranking military officials without a strict hierarchical structure.Earlier this year, the US government raised its bounty for Maduro to $50m. There is an active indictment in a Manhattan federal court related to the Cartel de los Soles case. A co-defendant and former top Venezuelan military intelligence chief pleaded guilty earlier this year to narco-terrorism crimes.The three vessels that were targeted by the US in recent weeks were traversing through the Caribbean. Trump administration officials, without proof, have said the vessels were carrying members of Tren de Aragua with drugs destined for the US.The administration has been adamant in escalating its fight against fentanyl trafficking into the US. However, fentanyl typically arrives across the southern US border from Mexico. More

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      As US warships prowl the Caribbean, our region must hold fast against Trump’s gaslighting

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      For decades, the Caribbean has been caught in the slipstream of other people’s wars – from cold war proxy battles to Washington’s “war on drugs” and “war on terror”. Our islands have too often been turned into the frontlines for policies scripted elsewhere but fought in our waters, our communities, and on the backs of our most vulnerable.The recent US naval strikes against alleged “drug boats” leaving Venezuela, and the decision of Trinidad and Tobago’s prime minister, Kamla Persad-Bissessar, to grant access to territorial waters without first consulting the Caribbean collective of developing countries, Caricom, risk dragging our islands into yet another manufactured storm.As US warships fire missiles at vessels they claim carry “narco-terrorists”, the Caribbean faces the prospect of being sacrificed in someone else’s theatre of war. The consequences could be catastrophic for livelihoods and fragile regional stability. Unless diplomacy and regional solidarity prevail, we could be destabilised in ways we are ill-equipped to endure.The US narrative rests on a familiar trope: that the Caribbean is nothing more than a trans-shipment hub for narcotics flowing north. Geography makes the accusation plausible. For decades, cocaine from Colombia has moved through Venezuela, Guyana, Suriname and across the archipelago to Miami, New York, Madrid and London.But the narrative is dishonest. The true driver is demand. The US insatiable appetite for cocaine and opiates created the billion-dollar trade routes that snake through Trinidad, Jamaica, the Bahamas and Guyana. Rather than own its addiction, the US projects blame outward, painting the Caribbean as “narco-territory” while denying the role of its own citizens as consumers, financiers, and enablers.View image in fullscreenFishing communities have long paid the highest price. In Trinidad and Tobago, countless fishers have been harassed, detained or shot at by Venezuelan coastguards. Some have been killed. These people, eking out a precarious living in overfished waters, now fear being mistaken for traffickers by US drones and warships.When the US broadcasts videos of small boats exploding into fireballs, they endanger every fisher who dares cast a net in the Gulf of Paria, between Trinidad and Venezuela.Washington’s sudden military zeal is telling. After decades of indifference to Caribbean pleas for fair trade, reparations and climate justice, we are asked to believe US destroyers lurk offshore to protect us. But the reality is this is about squeezing the Venezuelan president, Nicolás Maduro, destabilising the country and preparing the ground for regime change.It would be naive to ignore the oil factor. Between Trinidad’s long-established energy base, Venezuela’s colossal reserves and Guyana’s massive discoveries, the southern Caribbean has become one of the most coveted hydrocarbon regions anywhere.Donald Trump’s fixation on “narco boats” cannot be separated from the desire to influence who controls this wealth. From Iraq to Libya, Washington has repeatedly intervened in oil states, toppling governments and installing pliable leaders. The Caribbean must recognise the danger of being drafted into the next act of this playbook.History shows the consequences; Grenada in 1983, Panama in 1989, Haiti through multiple interventions. Each was justified as defending democracy; each left behind wreckage. To believe these new strikes are purely about drugs is to ignore the US’s long habit of cloaking imperial ambition in moral language.In a statement, Persad-Bissessar endorsed US naval forces’ presence as a necessary step to tackle organised crime.View image in fullscreen“For two decades, our country has been overwhelmed by bloodshed and rising violence,” she said. Acknowledging remarks by the US vice-president, JD Vance, she added: “He was right to point to our alarming crime and murder rates. My government will not be deterred by partisan outbursts or anti-American rhetoric when it comes to accepting help in confronting the terrorist drug cartels.”In one stroke, she undermined the regional solidarity that has been the Caribbean’s only shield in international politics. Caricom exists precisely so that no island has to face down a superpower alone. Persad-Bissessar has inadvertently conceded a harsher truth: that her administration, like those before it, is clueless in curbing the crime and corruption that continues to bleed the nation.Her unilateral approval of US access was dangerous statecraft. It weakens our collective negotiating hand and leaves Trinidad exposed as the naive accomplice of a superpower with a history of gaslighting its allies. The US knows it can pick off states one by one, securing “basing rights” or “access agreements” without facing a unified Caricom.Venezuela’s response has been furious. Maduro branded the US strikes “extravagant, unjustifiable, immoral and absolutely criminal” and warned of “the biggest threat our continent has seen in 100 years”.His vice-president, Delcy Rodríguez, told Trinidad and Guyana: “Don’t dare, don’t even think about it. You are lending yourselves to the perverse plans of aggression against the Venezuelan people.” She ridiculed US claims of narco-trafficking: “How can there be a drug cartel if there’s no drugs here?”View image in fullscreenDiosdado Cabello, Venezuela’s interior minister, flatly rejected US allegations, saying: “They openly confessed to killing 11 people … none were drug traffickers.”Caracas has since mobilised its navy and air force, raising the risk of accidental clashes at sea. With Trinidad tethered to Washington, the danger of being pulled into the line of fire is very real.All of this plays out against the backdrop of our demographic reality: with more than 22,000 Venezuelan refugees officially registered in Trinidad, and estimates suggesting the true figure may be 45,000 — the country hosts the highest per capita population of Venezuelan migrants anywhere in the Caribbean. The human consequences of any escalation will therefore be borne not only at sea but also within our own communities.At the UN general assembly last week, regional leaders voiced their unease. Barbados’s Mia Mottley warned that militarisation of the Caribbean “could occasion an accident that put the southern Caribbean at disproportionate risk” and insisted that “full respect for the territorial integrity of each, and every state in the Caribbean must be respected.”St Vincent and the Grenadines’ prime minister, Ralph Gonsalves, described US-Venezuela tensions as “most unhelpful”, reminding the world that the Caribbean had long declared itself to be a “zone of peace”.Their interventions reflected a deep regional anxiety about becoming collateral damage in a quarrel between larger powers. Yet in sharp contrast, Persad-Bissessar used her own UN platform to defend her embrace of Washington’s presence, dismissing the “zone of peace” as an “elusive promise”, while justifying security cooperation with the US as necessary to combat crime.The most chilling element of Washington’s narrative is the absence of any proof, though 11 people were killed in the first strike and three in the second. More, allegedly, were killed in subsequent strikes. Yet not a shred of credible evidence has been produced to show that these individuals were traffickers, much less members of the gang Tren de Aragua, as was claimed. Venezuelan officials insist their investigations found no gang affiliations.Are Caribbean citizens simply expected to accept Washington’s word? After Iraq’s phantom weapons of mass destruction and after decades of interventions elsewhere justified by doctored intelligence, we know better. If these were truly narco-traffickers’ boats, why were suspects not detained and questioned? Why was the norm of investigation abandoned in favour of summary execution at sea?The answer lies not in law but in politics. Trump thrives on chaos. His strategy is division, gaslighting and distraction. These strikes play directly to his Maga base – fiery video clips of boats blowing up, paraded as proof of “decisive action”. It is spectacle, not strategy.To believe these operations are genuine counternarcotics measures rather than campaign optics is to ignore everything Trump has shown us about his politics of manipulation. And it is the Caribbean that risks paying the price for his theatre.View image in fullscreenIf this trajectory continues, the consequences will be dire. Fishers may abandon their livelihoods if they fear being mistaken for traffickers, collapsing entire coastal communities. Tourism will falter in a militarised Caribbean where warships and drones haunt the waters. Trade through the Gulf of Paria and regional ports could be disrupted, raising costs for fragile economies already strained by debt and inflation. Diplomacy will fracture as Caricom’s delicate balance with Washington and Caracas collapses, leaving small states exposed.What is needed now is not more posturing but restraint. Talks between Trinidad and Tobago, Venezuela, Caricom, and Colombia – the historic source of the cocaine pipeline – are essential. The international community must demand transparency and de-escalation. Small island states cannot afford to become battlegrounds.The Caribbean must also insist on restoring international norms: detain suspects, investigate, prosecute. To kill without evidence and bomb small vessels without warning or due process is a descent into lawlessness that endangers every fisher, trader and innocent seafarer.Trinidad and Tobago, and the wider Caribbean, cannot be reduced to staging grounds for US electioneering or Venezuelan brinkmanship. Without restraint – from Caricom, the UN and sober voices in the hemisphere – the region risks being dragged into a conflict that is not of its making.Our fishing industry, our tourism, our fragile economies all stand to suffer. And beyond this lies sovereignty over our most valuable assets: oil and gas. The southern Caribbean is a resource frontier of immense global importance. History shows that US interventions in oil-rich states rarely end in stability or prosperity for the people who live there.Caribbean leaders must rediscover the discipline of solidarity, the wisdom of diplomacy, and the courage to say no to superpowers who mistake small states for pawns.The price for silence will not be paid in Washington or Caracas, but in the lives, economies and futures of Caribbean people. More

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      How Elon Musk’s billionaire Doge lieutenant took over the US’s biggest MDMA company

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      View image in fullscreenMonths before Antonio Gracias took a leading role in the dismantling of the federal government by the “department of government efficiency” (Doge), he was at Burning Man.In the dusty Nevada desert, Gracias, a billionaire private equity investor and one of Elon Musk’s closest friends, attended Nova Heaven, a sunrise rave tribute to victims of the Hamas-led 7 October terrorist attack, and found himself dancing next to Rick Doblin – the US’s most prominent advocate for psychedelic drugs.As hundreds of burners shuffled their sandy feet to psytrance music, Gracias started up a conversation. He had a piece of business advice.Doblin, 71 with an avuncular smile and tranquil, confident demeanor, is the founder of the Multidisciplinary Association for Psychedelic Studies (Maps), and has spent decades trying to legalize drugs such as MDMA, commonly known as ecstasy, for use in the treatment of trauma.Once mostly viewed as a party drug, medical researchers and advocates have seen promising results when using MDMA as a therapy aid. Gracias is a believer. He gave Maps $1m in 2020 and poured another $16m into funding psychedelics research at Harvard in 2023. Although his usual billionaire-casual attire would look more at home on Shark Tank than at a rave, he is part of a growing movement among Silicon Valley’s right wing that has become enamored with the potential – both therapeutic and commercial – of consciousness-altering drugs.Earlier that year, the pharmaceutical arm of Maps, a for-profit public benefit corporation called Lykos Therapeutics, had raised $100m as it awaited a Food and Drug Administration (FDA) decision on whether to allow MDMA for psychotherapy treatment of post-traumatic stress disorder (PTSD). Approval could turn Lykos into a multibillion-dollar pharma enterprise with exclusive US rights to sell the drug for therapeutic use for a period of six years.View image in fullscreenA few weeks before Burning Man, however, the FDA rejected the application over concerns about inadequate trial data. Doblin announced that he was exiting Lykos’s board, and the company laid off 75% of its staff. The business was in turmoil.On the playa – according to Doblin’s recounting of events – Gracias told him that the FDA’s rejection wasn’t his fault and blamed the company’s other leaders for the failure. Let Lykos go bust and start again with a clean slate, Gracias advised, before the two men parted ways in the desert.Weeks after their dancefloor meeting, Doblin reached out to Gracias with a proposition. The investors and board of Lykos were not going to let the company go bankrupt. Would Gracias consider launching a takeover bid and seizing operational control?As they corresponded about a potential plan, Doblin put Gracias in contact with the British hedge fund billionaire Christopher Hohn. By January, just before Gracias joined Doge, Gracias and Hohn were working on a takeover of Lykos.At the end of May, Lykos confirmed in a brief statement on its website that foundations owned by Gracias and Hohn had led a $50m Series B funding round that recapitalized the business. The sparse post included few details of the deal, and years of previous news releases from Lykos no longer appeared on the company’s website. In the following weeks, Lykos appointed a new CEO and chief medical officer and remade the board of directors. Gracias and Hohn are now in control of the most prominent MDMA therapy company in the US. Gracias, Doblin said, is taking a hands-on role in its operations.“It was the magic of Burning Man,” Doblin said. “I was sort of looking for a white knight that would come in and would be more focused on healing and on public benefit.”Gracias’s new leadership of Lykos comes at a pivotal moment for psychedelics treatment in the US. Top Trump administration health officials, such as the secretary for health and human services, Robert F Kennedy Jr, have said they are open to accelerating the use of psychedelic therapy while wealthy tech backers have moved to solidify control over the industry.But the takeover also highlights the ethical questions posed by Doge, even as its prominent leader, Musk, has left the government. Doge staffers like Gracias have received unprecedented access to US agencies, including their processes and staff. There have been few guardrails on their work, or the ways they leverage that access in their non-governmental lives. Just a few months ago, it was hard to imagine that an active government employee at an agency embedded across the government would assume control over a pharmaceutical company seeking FDA approval.“Maps and Gracias are going to try to seize the moment that we’re in,” said Ifetayo Harvey, a former Maps employee and executive director of the People of Color Psychedelic Collective. “I think the aim is to get MDMA-assisted psychotherapy approved by the FDA by any means necessary.”The Guardian reached out to Gracias via Lykos and his private equity firm with an interview request, a request for comment and a detailed list of questions. Neither Lykos nor the firm responded.Of drugs and DogeIn late July, a group of workers from the Service Employees International Union, the largest healthcare union in the US, marched down West Washington Boulevard in Chicago. They gathered outside the Valor Equity Partners investment firm, where Gracias is founder and CEO, to protest about his work with Doge, and what they see as its attacks on social security. At the front of the march, two demonstrators carried a banner with a message painted in bold white letters: “Antonio Gracias we will not forget your cruelty.”While Gracias was gaining control of Lykos, he had also been engaged in another power play, as a member of Doge, which shortly after Donald Trump’s inauguration had begun gutting federal agencies and seizing control over government databases.Gracias arrived at Doge as a longtime friend and business associate of Musk, with a relationship going back more than two decades. He was an early investor in Tesla through Valor Equity Partners, and was on the board of the automaker from 2007 until 2021. He still serves on the board of SpaceX, Musk’s rocket company, and is an investor in Neuralink, Musk’s brain chip venture. Valor has reportedly been in talks with lenders to raise $12bn for Musk’s xAI artificial intelligence firm. During Musk’s takeover and gutting of Twitter in 2022, Gracias acted as a mix of enforcer and proxy who tersely communicated Musk’s dictates to staff, according to the book Character Limit. Last year, he also contributed $1m to Musk’s America Pac effort to re-elect Trump.View image in fullscreenGracias and Musk’s ties go beyond business. The two men have gone on multiple personal and family vacations together, including a trip to the magician David Copperfield’s Bahamas island, according to a deposition Gracias gave in a 2023 court case. They have spent Christmas and other holidays together, and Gracias was a groomsman at the wedding of Musk’s brother Kimbal.Gracias and Musk have also taken illegal drugs together, witnesses told the Wall Street Journal. Multiple news outlets have reported that Musk has himself used MDMA and psilocybin mushrooms, as well as recreationally used ketamine. Musk has stated that he has used prescription ketamine to treat depression, and has vehemently denied reports of drug use impairing his abilities.As one of Musk’s most prominent staffers at Doge, Gracias began working at the Social Security Administration (SSA) and led a taskforce that involved accessing immigration data at the Department of Homeland Security. He appeared on stage alongside Musk in March to present misleading claims about immigrants and public benefits, and then in April on the All-In podcast promoted the conspiracy theory that Democrats were attempting to “import voters”, a favorite theory of Musk’s.Gracias claimed during his media appearances to be rooting out corruption at the SSA and specifically touted his efforts to uncover proof of immigrants illegally voting en masse. Yet the cases Gracias cited were hardly indicative of widespread malicious voter fraud, experts told NPR, such as a recently immigrated Ukrainian mother and daughter who told investigators they simply didn’t know they couldn’t vote.Gracias remained with Doge even after Musk’s very public breakup with Trump, with Politico reporting that he regularly visited the White House to meet with top officials such as the deputy chief of staff, Stephen Miller.Double-dipping with DogeGracias’s time in government ended in July, after his presence at Doge caught the attention of the AFL-CIO, the nation’s largest federation of unions. An AFL-CIO report in June raised questions about Gracias’s fiduciary responsibilities as CEO of Valor as the private equity firm manages retirement plans for public employees such as teachers and municipal workers.“We noted Antonio Gracias appeared to be moonlighting for Doge when he’s supposed to be running Valor for the benefit of those pension plans,” said Brandon Rees, deputy director of corporations and capital markets for the AFL-CIO.The report cited flight records, which the Guardian has viewed, that showed Valor’s private jet made 23 trips from the Washington DC region between January and April – suggesting Gracias was spending a large amount of time at Doge. In late July, the American Federation of Teachers sent a letter to nine public pension funds asking them to review the union’s investments with Valor, worth about $1.8bn.One week later, Gracias announced in a lengthy statement on X that he had already resigned from Doge on 4 July and denied claims he had abandoned his responsibilities.“I hope this is a moment where our compassion can be stronger than our anger,” he wrote.Valor Equity Partners did not respond to requests for comment on this article and a detailed set of questions.The pension fund controversy highlighted the ethical gray areas that Doge created, as some of its top staffers chose to pull double duty between public and private work. While Doge claimed to function with transparency, it has made public only a partial explanation of how its staffers accessed and used government data, as well as how their work may have informed their own future business endeavors. Doge’s broad mandate to reshape federal agencies allowed it to operate akin to a parallel government with little oversight or disclosure about its activities, ethics watchdogs and labor groups allege, and created larger concerns about what might constitute conflicts of interest for its staffers.“With the lack of transparency, it leaves us really grasping at what it even means to be Doge,” said Faith Williams, a policy director at the Project on Government Oversight, a non-profit watchdog group. “We have seen so many, if not outright conflicts of interest then potential for conflicts of interest, and if not outright corruption, potential for corruption.”That hazy dynamic raises questions about Gracias’s new leadership of Lykos, according to ethics experts, and what it might mean for a former Doge member to now be seeking regulatory approval. Although Gracias worked primarily with the SSA, Doge’s staffers have also been embedded in the FDA and fired employees reviewing clinical trials for Musk’s Neuralink.Government ethics rules generally prohibit federal employees from representing private enterprises to agencies while working in government. There are also rules limiting how former employees can represent private interests even after they have left the government, in an effort to prevent workers from trying to seek favor for a future regulatory decision.“You can’t be greasing the wheels and then say, ‘OK, now I’m going to quit and go pursue that approval,’” said Cynthia Brown, senior ethics counsel at the non-profit watchdog group Citizens for Responsibility and Ethics in Washington.Doblin denied that Gracias’s role at Doge posed any conflict of interest, saying that the billionaire did not work with the FDA. Lykos did not respond to questions related to Gracias’s work at Doge.Ecstatic expectations – dashedBefore the FDA rejected Lykos’s application, the psychedelics world had been riding high, anticipating that MDMA would soon be approved and behind it a slew of other treatments. Venture capitalists, politicians and wellness-minded celebrities had descended on the industry with a fervor, attending events such as Maps’ annual psychedelics conference in Denver, Colorado, in droves. Recent years featured speakers including future NFL hall of fame quarterback Aaron Rodgers, former Texas governor Rick Perry and former senator Kyrsten Sinema.View image in fullscreenThe 2024 application was the zenith of Doblin’s four-decade campaign to legalize MDMA for therapy purposes, part of his goal to reach “net zero trauma by 2070”. He founded Maps in 1986 on the premise that psychedelic drugs, which the US has long designated as illegal schedule 1 substances with a high potential for abuse, could have beneficial therapeutic uses and had been unfairly vilified, much like cannabis. The idea has gained significant scientific support, with preliminary evidence from studies showing that MDMA therapy can reduce PTSD symptoms.Doblin has also suggested more grandiose and outre uses for MDMA therapy, such as conflict resolution between Israelis and Palestinians. Maps has meanwhile trained therapists in a wide range of countries, including conflict zones such as Ukraine, on how to conduct therapy with the drug.As Doblin sought out funding and support for Maps and Lykos over the past decade, former employees say he began looking to broader circles of investors. They included advocates for military veterans interested in treating PTSD, big names in corporate finance and, controversially, the Republican donor Rebekah Mercer.One method was to court investors with invitations to parties where drugs were being used, according to Harvey, the former Maps employee.“Definitely part of their fundraising strategy is ‘Meet rich people at Burning Man, do psychedelics with them and get Maps money,’” Harvey, who was Doblin’s executive assistant in 2015, said.Maps denied that it used drugs to as a means of drumming up investment.“MAPS conducts all fundraising activities with the highest integrity and maintains strict ethical boundaries in all donor relationships and fundraising activities. MAPS does not supply controlled substances at any events or gatherings, nor do we use substances as a fundraising tool or strategy,” Maps said in a statement.Doblin also told Business Insider last year that giving drugs to donors was “not common”.Psilocybin ValleyGracias’s takeover of Lykos adds to a constellation of venture capitalists and tech world elites who have invested heavily in psychedelics. Another major player alongside Lykos is Atai Life Sciences, which is testing a synthetic version of a drug secreted by a species of toad, and is backed by Peter Thiel’s VC firm.While the juxtaposition of investors known for companies such as Palantir or initiatives like Doge may seem incongruous with the wellness world’s pronouncements about psychedelics, it is actually a culmination of a symbiotic relationship that stretches back to at least the 1970s.“There’s been decades and decades of overlap between Silicon Valley and psychedelics,” said Brad Burge, founder of psychedelics PR firm Integration Communications and a former Maps marketing director. “It’s just new in this epoch to be seeing this level of funding from highly public people.”Gracias is not even the only member of Doge with ties to the psychedelics industry. Before joining the agency, Alexandra Beynon worked as head of engineering for her husband’s at-home ketamine therapy company Mindbloom. Dylan Beynon, who founded the company, posted on X that he had previously met with Gracias to talk about an investment with Mindbloom, although no partnership materialized.Nor is Gracias the only member of Musk’s orbit to have donated to Maps. The former Tesla and SpaceX board member Steve Jurvetson, who the Wall Street Journal reported attended parties and consumed drugs with Musk, has also donated $2.6m to Maps through a non-profit he founded with his wife. In 2012, the non-profit organization that Musk founded with his brother Kimbal also directly donated $10,000 to Maps. The money went to funding the Temple of Whollyness at Burning Man, a complex wooden art sculpture that tech money helped build before it was ceremoniously burned down.A bump from TrumpGracias’s takeover of Lykos comes at a fortuitous time for the psychedelics industry, with the Trump administration and Republican lawmakers embracing alternative drugs as part of the “Make America healthy again” movement. Although the Biden administration was also open to the use of psychedelics therapy, experts say, some top Trump health officials have gone further, calling for accelerating and re-evaluating the FDA review process.“This line of therapeutics has tremendous advantage if given in a clinical setting, and we are working very hard to make sure that that happens within 12 months,” Kennedy said during a House committee meeting in late June, adding that the FDA commissioner, Marty Makary, agreed that psychedelics were a promising treatment.Trump’s pick for surgeon general, Casey Means, has praised using psilocybin mushrooms for therapy as one of the most meaningful experiences of her life, much like Steve Jobs. Her brother Calley Means, one of Kennedy’s top advisers, meanwhile told Politico in June that the Republican party had become the “party of psychedelics research”.The new administration’s outlook is potentially good news for Lykos, which is still recovering after the FDA ruled that the clinical trials it published in 2021 and 2023 suffered from bias issues and did not meet standards. One concern from those reviewing the studies was the difficulty of a double-blind test, since it was obvious to participants who got MDMA and who did not.The FDA’s ruling required Lykos to conduct another phase 3 clinical trial, probably a years-long endeavor that could cost millions. The company sought to contest the findings, while some advocates, including Doblin, blamed the anti-corporate psychedelics group Psymposia, accusing it of influencing the FDA against approval. Psymposia denied it was the sole reason for the FDA rejection.“The FDA rejected Lykos for flawed science, not because of Psymposia, and the public still deserves better than pseudoscientific therapy,” Psymposia said in a statement. “Gracias’ willingness to back a company rejected for safety failures while pushing disinformation at Doge suggests a consistent disregard for facts in pursuit of profit.”Other researchers took a middle ground, believing that while MDMA therapy showed promise, it wasn’t ready for prime time.“It’s very possible that MDMA is a safe and effective treatment under the right conditions,” said Mason Marks, lead of the Project on Psychedelics Law and Regulation at Harvard Law School’s Petrie-Flom Center. “But I don’t think that was demonstrated adequately by the data, and there were a lot of question marks.”While Trump health officials project optimism, there is also wariness within the psychedelics industry that the new administration’s support for psychedelics therapy could risk politicizing the drugs or lead to a loosened scientific review of their safety and efficacy. Such a result could end up setting back the industry in the long run, some advocates argue.“If it’s politicized in that way, then what happens in the future when we have a differently politicized administration?” said Burge. “Are they going to be able to roll that back and cite that there wasn’t sufficient evidence, and that psychedelic therapies were only approved because this particular administration felt like doing so?”There’s little that would prevent the FDA under Kennedy and its new commissioner Makary from reversing the agency’s ruling against Lykos, Marks said. The FDA is not bound by its previous decision and has the power to request a less stringent follow-up trial, throw out its decision altogether or authorize a substance for emergency use. In June, the FDA also announced a Commissioner’s National Priority Voucher program that would allow qualifying drug developers to shorten the agency’s review time from 10 to 12 months to one to two months.“I can’t really speak on the negotiations with the FDA,” Doblin said. “I hope that instead of a phase 3 study that the FDA may determine, I believe, that the data we gathered was valid.”Any rollback of the ruling, even a partial one, could carry extraordinary benefits for Lykos and Gracias. More

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      in US Politics

      Trump reportedly considers reclassifying marijuana as less dangerous drug

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      Donald Trump is considering reclassifying marijuana as a less dangerous drug, the Wall Street Journal reported on Friday, citing people familiar with the matter.At a $1m-a-plate fundraiser at his New Jersey golf club earlier this month, Trump told attendees he was interested in making such a change, the people, who declined to be named, told the newspaper.The reclassification, to remove marijuana from the list of Schedule I controlled substances and make it a Schedule III drug, was proposed by the Biden administration, but not enacted. The change would make it much easier to buy and sell marijuana and make the legal multibillion-dollar industry more profitable.The guests at Trump’s fundraiser included Kim Rivers, chief executive of Trulieve, one of the largest marijuana companies, who encouraged Trump to pursue the change and expand medical marijuana research, the report said.During Trump’s first term, two Soviet-born Republican donors, Lev Parnas and Igor Fruman, directly appealed to Trump for help with their plan to sell marijuana in states where recreational use was legal. Audio of the 2018 dinner, which was secretly recorded by the two men, revealed that Trump was skeptical, telling the two men that he believed marijuana use “does cause an IQ problem; you lose IQ points”.In the same conversation, the Ukrainian-born Parnas first suggested to Trump that he should remove the US ambassador to Ukraine, Marie Yovanovitch, and shared a false rumor that the diplomat was badmouthing the president by “telling everybody, ‘Wait, he’s gonna get impeached.’”Parnas and Fruman later helped Rudy Giuliani search for dirt on Joe Biden in Ukraine, before being indicted and found guilty of campaign finance violations, for secretly using a Russian oligarch’s money to donate hundreds of thousands of dollars to Republican campaigns and committees, including Trump’s, in pursuit of favors for their planned legal marijuana business.Reuters contributed reporting More