Elon Musk’s social media platform, X, is contesting the transfer of InfoWars’ accounts as part of the site’s bankruptcy sale to satirical news outlet The Onion. The objection, based on X’s terms of service, argues the platform owns user accounts and requires its permission for their sale or transfer.
InfoWars, founded by Alex Jones, was auctioned after he was ordered to pay $1.5 billion in damages to families of the Sandy Hook Elementary School shooting victims for falsely claiming the tragedy was a hoax.
The Onion placed the winning bid of $1.75 million, with the support of the Sandy Hook families. However, another bidder, First United American Companies, offered $3.5 million but alleged improper collusion in the auction process.
In a court filing, X claimed its terms of service specify that accounts on the platform are licensed to users but remain the property of the company. X’s stance highlights broader implications for social media account ownership, potentially affecting millions of users. The platform clarified it does not oppose the sale of other InfoWars assets, such as its website or customer lists.
Jones and First United American Companies have also filed objections, accusing the trustee overseeing the sale of bias. The trustee denied the allegations, calling them baseless attempts to disrupt the auction. A bankruptcy judge is set to hold a hearing in December to determine whether the sale can proceed.
The case underscores Elon Musk’s growing use of X’s platform for personal and political influence. Musk recently reassigned the dormant @America account to promote his pro-Trump super PAC, as part of his increasingly visible role in the president-elect’s administration.
The legal battle is expected to set a precedent for how social media accounts are treated in bankruptcy cases, with potential ramifications for the tech industry.
