SEC Probes Twitter Over Spam Accounts — Court Orders the Social Media Giant to Provide Additional Data to Elon Musk – Featured Bitcoin News

Twitter Inc. was ordered to give additional information about spam accounts and bot accounts to Elon Musk. Tesla CEO was sued by the social media firm for ending his offer of $44 billion to acquire the social media site. Twitter has been questioned by the U.S. Securities and Exchange Commission.

A Court orders Twitter to provide additional data to Elon Musk

Kathaleen St. J. McCormick (a Delaware Court of Chancery judge) signed Thursday’s order requiring Twitter Inc. to give additional information to Elon Musk, Spacex CEO, and Tesla Inc. Plaintiff Twitter sued Musk, his companies X Holdings I, and X Holdings II for cancelling the $44 million deal to purchase the social media platform. Musk has responded to Twitter.

In her order, Judge McCormick noted:

Defendants’ data requests are absolutely abroad.

She added: “Read literally, Defendants’ documents request would require Plaintiff to produce trillions upon trillions of data points reflecting all of the data Twitter might possibly store for each of the approximately 200 million accounts included in its mDAU count every day on every three years.”

The social media company defines monetizable daily active users (mDAU) as “Twitter users who logged in and accessed Twitter on any given day through or Twitter applications that are able to show ads.”

You can also read the following:

Plaintiff is ordered to produce a subset of what Defendants have requested: the 9,000 accounts reviewed in connection with Plaintiff’s Q4 2021 audit, which the parties refer to as the ‘historical snapshot.’

“Plaintiff represented that, with considerable effort, these documents could be produced in under two weeks, and Plaintiff shall strive to meet that timeline. In addition, Plaintiff must produce documents sufficient to show how those 9,000 accounts were selected for review,” the order details.

A new regulatory filing that was made public on Wednesday by the U.S Securities and Exchange Commission (SEC), revealed that Twitter has been under investigation over how it identifies spam accounts.

Parag Agrawal, the CEO of Twitter was asked by the SEC to explain how Twitter calculates bot accounts in a June 15 letter. “We note your estimate that the average number of false or spam accounts during fiscal 2021 continues to represent fewer than 5% of mDAU,” the SEC wrote, adding:

Please disclose, to the greatest extent possible, the method used for calculating the figures as well as the assumptions and judgments made by management.

Twitter replied to the SEC inquiry by providing a standard description for its method on June 22, The social media giant informed the securities regulator that it has “adequately” disclosed the methodology that it uses, noting that it randomly selects thousands of accounts to be reviewed by people each quarter.

The SEC sent another letter to Twitter on July 27 stating: “We have completed our review of your filings. We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.”

Musk had sold 8 million shares of Tesla stock earlier this month. Tesla CEO Musk stated that, in the unlikely event that Twitter makes it impossible for the buyout to be completed and certain equity partners fail to come through with the deal, Tesla should avoid any emergency sales of stock.

Are you convinced that Elon Musk will be forced to sign the agreement to purchase Twitter by the court? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and a Bitcoin evangelist since 2011, was one of the first to discover Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.

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