Elon Musk’s X Loses Lawsuit Against Hate Speech Watchdog CCDH

A U.S. judge on Monday threw out Elon Musk’s lawsuit against a nonprofit group that faulted him for allowing a rise in hate speech on his social media platform X, formerly Twitter.

U.S. District Judge Charles Breyer in San Francisco said it was “evident” that Musk’s X Corp sued the Center for Countering Digital Hate (CCDH) because he didn’t like its criticism, and thought its research would hurt X’s image and scare advertisers away.

“X Corp has brought this case in order to punish CCDH for CCDH publications that criticized X Corp–and perhaps in order to dissuade others who might wish to engage in such criticism,” Breyer wrote.

“It is impossible to read the complaint and not conclude that X Corp is far more concerned about CCDH’s speech than it is its data collection methods,” he added.

X, in a statement, said it plans to appeal.

The decision is a blow to Musk, the world’s third-richest person, who has for many years styled himself as a free-speech champion.

But since paying $44 billion for Twitter in October 2022, he has faced wide criticism for firing too many people who policed misinformation, and from civil rights groups for allowing more harmful and abusive posts.

Imran Ahmed, chief executive of the Center for Countering Digital Hate, in a statement said Breyer’s decision affirms his group’s right “to hold accountable social media companies for decisions they make behind closed doors.”

Roberta Kaplan, a lawyer for the nonprofit, said the decision shows that Musk “cannot bend the rule of law to his will.”

Musk and X have also faced many other lawsuits, including claims by former Twitter executives that Musk improperly withheld severance, and by vendors claiming they haven’t been paid.

Tesla, the electric vehicle maker that Musk runs, has separately faced several lawsuits claiming it tolerated the harassment of workers. It has denied those claims.

Musk takeover not foreseeable

X accused the center of breaching its 2019 user contract by scraping and cherry-picking data to create false and misleading reports that Musk turned X into a haven for hate speech, extremism and misinformation.

According to X’s complaint filed last July, the nonprofit designed its “scare campaign” to drive away advertisers, and caused tens of millions of dollars in damages.

X had argued that the nonprofit was bound by Musk’s policy changes, and could have left Twitter if it didn’t like them.

Breyer agreed that X’s desire to staunch criticism was “entirely reasonable from a business point of view.”

But he said the nonprofit could not have foreseen when it signed up with Twitter that Musk would eventually take over and loosen how it moderated user content.

Breyer also dismissed X’s claims against the European Climate Foundation, a nonprofit based in The Hague, Netherlands that promotes efforts to mitigate climate change.

X had accused it of conspiring with the Center for Countering Digital Hate to illegally gather data.

Nathaniel Bach, a lawyer for ECF, said that nonprofit was grateful for the dismissal of Musk’s “frivolous” lawsuit.

Musk’s own speech has often also drawn complaints.

In November 2023, Musk endorsed an antisemitic post on X that said members of the Jewish community were stoking hatred against white people, saying the user spoke “the actual truth.”

Musk has denied being antisemitic and sought to make amends, including in a January visit to the former Nazi death camp Auschwitz in southern Poland.

The case is X Corp v. Center for Countering Digital Hate Inc et al, U.S. District Court, Northern District of California, No. 23-03836.

© Thomson Reuters 2024


(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Bankman-Fried blames Changpeng Zhao for campaign against FTX

Sam Bankman-Fried accused Binance boss Changpeng “CZ” Zhao of waging a lengthy campaign to destroy his crypto empire on Thursday while making yet another attempt to explain what led to FTX’s catastrophic bankruptcy.

In a lengthy Substack post, the disgraced former FTX CEO alleged that Zhao’s “fateful tweet” on Nov. 6 capped a “extremely effective months-long PR campaign against FTX.”

“In November 2022, an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent,” Bankman-Fried wrote.

The disgraced FTX founder’s business collapsed shortly after Zhao tweeted that Binance was dumping its position on FTX’s in-house digital token FTT.

The tweet started a domino effect that pushed Bankman-Fried’s crypto hedge fund Alameda Research into insolvency and FTX filed for bankruptcy on Nov. 11.

The Post has reached out to Binance for further comment.

The blog post marked some of Bankman-Fried’s first public comments since he pleaded not guilty to eight federal charges of fraud in connection to FTX’s collapse on Jan. 3. The feds have accused the 30-year-old of perpetuating a scheme to bilk FTX customers out of billions of dollars that were used to fund his ritzy lifestyle and prop up risky bets at Almeda.

Bankman-Fried and Zhao have regularly exchanged insults since FTX’s downfall. In December, Zhao responded directly to claims that his actions caused the bankruptcy, tweeting that “FTX killed themselves (and their users) because they stole billions of dollars in user funds.”

Changpeng Zhao has denied his actions caused FTX’s downfall.
REUTERS

“No healthy business can be destroyed by a tweet,” Zhao added.

Bankman-Fried cycled through many of his other oft-repeated defenses in the post and maintained his innocence on the fraud charges. The former FTX boss, who has claimed to be down to his last $100,000, also denied having a secret stash of money.

“I didn’t steal funds, and I certainly didn’t stash billions away,” Bankman-Fried said. “Nearly all of my assets were and still are utilizable to backstop FTX customers.”

Sam Bankman-Fried faces 115 years in prison.
GC Images

Bankman-Fried has been in a separate legal battle in bankruptcy court with the feds and multiple creditors over a $460 million stake in Robinhood. Bankman-Fried’s lawyers have argued he should retain control of the stake to fund his legal defense.

“[I have] offered to contribute nearly all of my personal shares in Robinhood to customers — or 100%, if the Chapter 11 team would honor my D&O legal expense indemnification,” he wrote.

Bankman-Fried’s post included several charts detailing his “estimates” of the financial situations at FTX and Alameda. He claimed that Alameda had a net asset value of $100 billion as recently as 2021.

Zhao is CEO of Binance.
REUTERS

“All of which is to say: no funds were stolen,” Bankman-Fried wrote. “Alameda lost money due to a market crash it was not adequately hedged for.”

Bankman-Fried is currently under house arrest at his parents’ mansion in California. He faces up to 115 years in prison if convicted on all charges.

SBF penned a lengthy blog post on FTX’s demise.
REUTERS

Several former FTX and Alameda executives, including Caroline Ellison and Gary Wang, are cooperating with authorities on their case against Bankman-Fried.



Check out our Latest News and Follow us at Facebook

Original Source

Exit mobile version