A Ponzi scheme "is a fraud intended to mislead investors," said Christina C. Benson, an Elon University associate professor of business law. "Social Security is a legally mandated system that has been in place since the 1930s to serve as a critically important social safety net that allows working Americans to save towards retirement."

The involvement of Antonio Gracias, an investor who has known Elon Musk for two decades, suggests that Mr. Musk has made overhauling the Social Security Administration a priority.

The White House is trying to calm concerns about the future of Social Security amid Elon Musk's latest comments and critics warning the Trump administration is 'gutting it.'