Prior restraint: Elon Musk claims government-imposed muzzle unlawful

Elon Musk’s lawyer claims the Tesla CEO is under constant threat that the SEC will disagree with his interpretation of what he can say. (AP)
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Updated 28 September 2022

Prior restraint: Elon Musk claims government-imposed muzzle unlawful

  • Court brief: Musk’s speech is chilled by the threat of SEC investigations and prosecution for contempt of court

DETROIT: US Securities regulators are unlawfully muzzling Tesla CEO Elon Musk, violating his free speech rights by continually trying to enforce a 2018 securities fraud settlement, Musk’s lawyer contends in a court brief.
The document, filed late Tuesday with the federal appeals court in Manhattan, was written to support Musk’s appeal of a lower court’s April decision to uphold the settlement with Securities and Exchange Commission.
The brief says that a provision in the settlement requiring Musk to get prior approval before tweeting about the electric car company is an illegal “government-imposed muzzle on Mr. Musk’s speech before it is made.”
The settlement required that his tweets be approved by a Tesla attorney before being published. The SEC is investigating whether Musk violated the settlement with tweets last November asking Twitter followers if he should sell 10 percent of his Tesla stock.
But in the brief, Musk attorney Alex Spiro contends that the SEC is continually investigating Musk for topics not covered by the settlement. It asks the Second Circuit Court of Appeals to strike or modify the prior approval provision.
“The pre-approval provision in the consent decree qualifies as a prior restraint on speech that runs afoul of the First Amendment,” Spiro wrote. “It forbids future lawful speech on a range of topics absent approval.”
Further, Musk’s speech is chilled by the threat of SEC investigations and prosecution for contempt of court, the brief said.
The whole dispute stems from an October 2018 agreement with the SEC that Musk signed. He and Tesla each agreed to pay $20 million in civil fines over Musk’s tweets about having the “funding secured” to take Tesla private at $420 per share.
The funding was far from locked up, and the electric vehicle company remains public, but Tesla’s stock price jumped. The settlement specified governance changes, including Musk’s ouster as board chairman, as well as pre-approval of his tweets.
In April, US District Judge Lewis Liman in New York rejected Musk’s bid to throw out the settlement that he signed with the SEC. He also denied a motion to nullify a subpoena of Musk seeking information about possible violations of the settlement.
Liman’s ruling said that Musk made the tweets without getting pre-approval, but the judge later wrote that he didn’t mean to pass judgment on that issue.
A message was left early Wednesday seeking comment from the SEC.
Spiro writes that Mr. Musk’s waiver of his First Amendment rights in the settlement was not voluntary because there was no way for Musk to know how far reaching it was. “The provision applies to future speech about circumstances no one could anticipate in advance,” he wrote.
Musk, he said, is under constant threat that the SEC will disagree with his interpretation of what he can say. Musk also agreed to the deal when Tesla was a smaller company and the SEC action could have jeopardized its financing.
“The SEC has maintained constant investigations into Mr. Musk’s speech, employing nebulous interpretations of the consent decree seemingly designed to curb and chill his future speech, all regarding speech entirely unrelated to the 2018 tweet for which the SEC initiated this action,” Spiro wrote.
Tesla is now the most valuable automaker in the world, and Musk is the world’s wealthiest person.
Liman ruled that Musk’s claim that economic duress caused him to sign the settlement is “wholly unpersuasive.”
Even if Musk was worried that litigation with the SEC would ruin Tesla financially, “that does not establish a basis for him to get out of the judgment he voluntarily signed,” Liman wrote.
The judge also said Musk’s argument that the SEC had used the settlement order to harass Musk and launch investigations was “meritless.”

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Twitter suspends Kanye’s account again on violating rules

Updated 03 December 2022

Twitter suspends Kanye’s account again on violating rules

  • Twitter owner Elon Musk had welcomed the return of the rapper, now known as Ye, to the platform in October

DUBAI: Twitter Inc. on Friday suspended Kanye West’s account again, just two months after it was reinstated, after its owner Elon Musk said he had violated the platform’s rules prohibiting incitement to violence.
Musk, who calls himself a free speech absolutist, had welcomed the return of the rapper, now known as Ye, to the platform in October.
“I tried my best. Despite that, he again violated our rule against incitement to violence. Account will be suspended,” Musk tweeted late on Thursday.
West’s account was suspended within an hour of Musk’s post, made in a reply to a Twitter user who had said “Elon Fix Kanye Please.” Twitter did not immediately respond to a request for comment.
Before suspending Ye’s account, which had over 30 million followers, Twitter had restricted one of his tweets. Reuters could not independently verify the contents of the post.
The social media platform restored the rapper’s account before the completion of its $44 billion takeover by Musk. Musk later clarified that he had had no role in bringing Ye back on Twitter.
Ye on Thursday tweeted a photo of Hollywood mogul Ari Emanuel spraying water at the back of Musk’s head with a hose. He captioned the picture “Let’s always remember this as my final tweet #ye24,” before the account was suspended.
Musk responded that Ye’s account was suspended for incitement to violence, and not for posting “an unflattering pic of me being hosed by Ari.”
In November, Twitter reinstated some controversial accounts that had been banned or suspended, including satirical website Babylon Bee and comedian Kathy Griffin.
Musk also decided to reinstate former US President Donald Trump’s account after a majority of Twitter users voted in favor in a poll to bring back Trump.

 

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Social app Parler says sale to Kanye West called off

Updated 02 December 2022

Social app Parler says sale to Kanye West called off

  • Owners said the decision was made “in the interest of both parties in mid-November.”

NEW YORK: Social network Parler announced Thursday that its planned sale to Kanye West has been called off, as the rapper-businessman now known as Ye continues to alienate fans and commercial partners with anti-Semitic comments.
“Parlement Technologies would like to confirm that the company has mutually agreed with Ye to terminate the intent of sale of Parler,” the network — seen as a home for online extremist rhetoric — said in a tweet.
It said the decision was made “in the interest of both parties in mid-November.”
Parler had announced a deal for West to buy the platform popular with conservatives in mid-October — just over a week after the rapper’s Twitter and Instagram accounts were restricted over anti-Semitic posts he made.
But the rapper, who has spoken openly about his struggles with mental illness, has seen his business relationships crumble in recent weeks as his erratic behavior and extreme speech continue to raise concerns.
In perhaps his most provocative outburst to date, West on Thursday declared his “love” of Nazis and admiration for Adolf Hitler during a rambling livestream with conspiracy theorist Alex Jones.
The 45-year-old’s restrictions on Twitter and Instagram last month were not the first time his posts prompted punitive action from major social media platforms.
Earlier this year, West was banned from posting on Instagram for 24 hours after violating the social network’s harassment policy amid his acrimonious divorce from reality star Kim Kardashian.
Launched in 2018, Parler became a haven for Donald Trump supporters and far-right users who say they have been censored on mainstream social media platforms. It has since signed up many more traditional Republican voices.
Parler was temporarily removed from Apple and Google app stores last year for failing to moderate calls for violence after the attack on the US Capitol by supporters of the former president.
It has since been allowed back in the both stores, ostensibly after improving its content moderation systems.


Netflix to let more subscribers preview content

Updated 01 December 2022

Netflix to let more subscribers preview content

  • Feature allows selected members to preview shows or films

LONDON: Netflix Inc. is planning to let tens of thousands of users around the world to preview content from early next year, expanding beyond its current previewer base of 2,000-plus subscribers, sources reported on Thursday.
Netflix’s Preview Club, which started more than a year ago, allows its members to watch some shows or films before they appear broadly on the platform and review them, the Journal reported, citing people familiar with the matter.
The video streaming giant did not immediately respond to a Reuters request for comment.
The move underpins Netflix’s efforts to ensure quality content, at a time when investors and analysts focus more on the profitability of streaming firms.


Taliban silence Voice of America broadcasts in Afghanistan

Updated 01 December 2022

Taliban silence Voice of America broadcasts in Afghanistan

  • Voice of America and Radio Free Europe are funded by the US government, though they claim editorial independence
  • Afghanistan has lost 40 percent of its media outlets and 60 percent of its journalists since the Taliban takeover

WASHINGTON: The Voice of America said Wednesday that Taliban authorities have banned FM radio broadcasts from VOA and Radio Free Europe/Radio Liberty in Afghanistan, starting Thursday.
VOA said Taliban authorities cited “complaints they have received about programming content” without providing specifics.
VOA and RFE are funded by the US government, though they claim editorial independence.
The Taliban overran Afghanistan in August 2021 as American and NATO forces were in the final weeks of their pullout from the country after 20 years of war.
Despite initially promising a more moderate rule, they have restricted rights and freedoms and widely implemented their harsh interpretation of Islamic law, or Sharia.
Abdul Qahar Balkhi, the spokesman for the Ministry of Foreign Affairs, said Thursday that Afghanistan has press laws and any network found “repeatedly contravening” these laws will have their privilege of working in the country taken away.
“VOA and Azadi Radio (Radio Liberty) failed to adhere to these laws, were found as repeat offenders, failed to show professionalism and were therefore shut down,” he said.
The advocacy group Reporters Without Borders said recently that Afghanistan has lost 40 percent of its media outlets and 60 percent of its journalists since the Taliban takeover.


As crypto collapses in US, is Middle East going through a digital renaissance?

Updated 02 December 2022

As crypto collapses in US, is Middle East going through a digital renaissance?

  • NFT startups in region seem to think so

DUBAI: OasisX, the nascent curated multichain non-fungible token marketplace, which aims to drive adoption of NFTs in the Middle East and North Africa region is embracing Web3 in several ways integrating NFTs, blockchain, and cryptocurrencies within its platform.

Jimi Ibrahim, one of the co-founders of the company, who has described the new iteration of the internet as a digital renaissance, said: “Web3 has four pillars: Blockchain as a secure infrastructure, tokens like NFTs for proof of ownership and provenance, cryptocurrencies for store of value and transactions, and the metaverse, which is a combination of augmented reality and virtual reality.”

The adoption of Web3, however, has witnessed a slowdown as cryptocurrency and NFT scams have become rampant in markets such as the US. Despite the promise of a more secure internet, cryptocurrencies can be used and abused for fraudulent activities, as evidenced by the recent FTX scandal.

Founded by Sam Bankman-Fried in 2019, FTX is a cryptocurrency exchange, that rose to popularity thanks to celebrity endorsements and an aggressive marketing strategy.

In November, the crypto news site CoinDesk published the balance sheet of Alameda Research, a crypto investing firm also owned by Bankman-Fried, showing that Alameda held a large amount of a digital currency created by FTX called FTT.

“While there is nothing per se untoward or wrong about that, it shows Bankman-Fried’s trading giant Alameda rests on a foundation largely made up of a coin that a sister company invented, not an independent asset like a fiat currency or another crypto,” the article said.

However, if the value of the FTT were to drop, Alameda would essentially be at risk of insolvency.

The article set in motion a series of legal actions against Bankman-Fried, FTX, and the celebrities who promoted the crypto exchange, resulting in one of the biggest financial scandals.

The incident has slowed down the adoption of crypto, diminished faith in the industry, and cost a lot of people a lot of money. Although Ibrahim noted that it had “hurt the industry,” he pointed out that it had acted as a purge of sorts.

He said: “Foul play has to be shed light on, and such players have to be removed from the playing field so that the environment is much more safe and secure for natural growth.” He added that, ultimately, was the future where “decentralized finance is going to change the world for the better.”

The global NFT industry alone reached a market capitalization of $41 billion by the end of 2021, according to blockchain data company Chainalysis.

The space was also growing to include non-fungible assets, Ibrahim said, which would see it extending into the real world. For example, the real estate and NFT industries have been merging with several properties being sold as NFTs.

In February, US-based real estate company Propy sold an NFT-backed property, a 2,164-square-foot house in Florida, for $653,000 with the winning bidder receiving a NFT as proof of the home’s ownership.

“This is the future we’re looking to tap into, facilitate and expedite because it only makes sense to secure everything on the blockchain,” Ibrahim added.

OasisX aims to bring a new layer of security and accessibility to the world of NFTs in the MENA region for both artists and businesses.

Ibrahim along with co-founders Najib Khanafer and Ramzi Mneimneh started working on the platform more than one year ago and officially launched it at the NFT LB event in Lebanon in September.

The event featured the work of 23 artists, half of which were sold out during the event, as well as served as a platform for panel discussions, movie screenings, and AR and VR experiences.

The company’s marketplace features only vetted artists, unlike platforms such as OpenSea, which avoids any “bogus projects,” Ibrahim said.

Anyone can create and sell NFTs on OpenSea. Since the platform does not vet artists, many fraudulent NFTs end up on it. Earlier this year, OpenSea reported that more than 80 percent of the items on the platform were plagiarized works, fake collections, and spam.

“We want to keep the art community safe and secure with the right projects,” Ibrahim added.

Available in English and Arabic, the platform currently has 250 vetted artists and aims to grow into the biggest MENA-based marketplace. It also works with galleries through a referral program where the gallery receives a royalty over the first sale of any artist that gets onboarded and vetted on the platform.

It only charges 2 percent in transaction fees — among the lowest in the industry — because “artists should make the most of the sale of their hard work,” Ibrahim said. That was also why, he added, the company would never remove royalties.

Often, the technical skills needed to create NFTs can serve as a barrier to entry for both artists and brands. The company, therefore, created LaunchX, an NFT generator powered by artificial intelligence.

Recognizing that there are some still wary of NFTs and cryptocurrencies, the company has integrated options such as paying through credit cards, to make it more accessible.

The entire process is secured through a smart contract on the blockchain. Ibrahim said it was more secure than using traditional banking, especially in countries such as Lebanon, where the banking system was a shambles leaving many unable to use credit cards.

It was almost impossible to corrupt information on the blockchain making it more secure than traditional transaction methods used in Web2, he added.

Despite resistance and reluctance, Ibrahim forecasted that Web3, and cryptocurrencies, would become the norm in the next five to 10 years with people using it just as seamlessly as they use debit and credit cards today.