Request for Investigation into X Corp and Elon Musk for Potential Fraud, Deceptive Conduct, and Foreign Influence under U.S. Law

To:
U.S. Department of Justice (DOJ)
Federal Trade Commission (FTC)
House and Senate Committees on Judiciary, Commerce, and Intelligence
Federal Communications Commission (FCC)

I. Summary of Allegations

This complaint requests urgent investigation into whether Elon Musk, through his ownership and operation of X Corp (formerly Twitter), has engaged in:

  • Materially deceptive conduct, including false public representations of X as a platform for “free speech” while suppressing content critical of the Chinese Communist Party (CCP);

  • Potential securities fraud, under SEC Rule 10b-5, by making false or misleading statements about platform neutrality and transparency while concealing foreign influence risks;

  • Unregistered foreign agency activity in violation of the Foreign Agents Registration Act (FARA), through content moderation practices seemingly aligned with CCP directives;

  • National security endangerment, by operating a key digital infrastructure platform with dual loyalty to a foreign adversary (PRC), creating significant risk to U.S. democratic discourse and public access to truthful information.

II. Background

Elon Musk acquired Twitter (now X) in 2022 and claimed it would be “a platform for free speech.” Statements include:

“Free speech is the bedrock of a functioning democracy.”
“X is the global town square for open dialogue.”
— Elon Musk, 2022–2024 (public interviews, X posts)

However, evidence shows that X has:

  • Suspended or throttled accounts critical of the CCP, including activists, whistleblowers, and journalists;

  • Deactivated users drawing comparisons between Elon Musk and CCP-linked figures such as Guo Wengui;

  • Failed to apply content moderation standards consistently or transparently, especially regarding China-related topics.

III. Financial Conflict of Interest and CCP Leverage

Musk’s position as CEO of Tesla—a company with major operations in the PRC—creates a conflict of interest:

  • Tesla Shanghai Gigafactory is under CCP regulatory control;

  • Tesla exports from China rely on state-run customs, inspections, and subsidies;

  • CCP policy changes can directly affect Tesla’s bottom line (e.g., rare earth quotas, tariffs, or domestic license approvals).

This creates incentives for compliance with CCP preferences across all Musk-controlled platforms—including X.

IV. Legal and Regulatory Grounds

1. False Advertising and Deceptive Trade Practices
Under Section 5 of the FTC Act, businesses may not falsely represent core aspects of their product. X’s claims of “free speech” and “neutrality” are contradicted by its opaque censorship aligned with Chinese interests.

2. Securities Fraud
Under Rule 10b-5 of the Securities Exchange Act, material omissions or misstatements about operational risks—such as foreign influence—can constitute fraud.
If Musk concealed the influence of CCP-related interests in his management of X, and that information would be material to investors or the public, that could violate federal securities law.

3. FARA Violations
If X Corp or Musk are acting “at the order, request, or under the direction or control” of the CCP or any foreign principal and have not disclosed this, it may violate the Foreign Agents Registration Act.

4. National Security Endangerment
The Cybersecurity and Infrastructure Security Agency (CISA) recognizes social media as critical infrastructure. If Musk’s personal financial incentives compromise platform integrity in favor of a foreign adversary, it raises urgent counterintelligence concerns.

V. Specific Request for Action

We urge U.S. authorities to:

  1. Investigate Elon Musk and X Corp for false advertising, securities fraud, and deceptive conduct under 15 U.S.C. §45 and the Securities Exchange Act.

  2. Review potential FARA violations relating to CCP influence over X Corp’s censorship and moderation policies.

  3. Audit the national security risks of CCP leverage over Musk through Tesla’s operations in China, in coordination with CFIUS and the Office of the Director of National Intelligence (ODNI).

  4. Publicly disclose the results of such investigation to ensure transparency for users, investors, and democratic institutions.

VI. Conclusion

The convergence of private tech power, foreign authoritarian influence, and public deception presents a direct challenge to American democracy, speech integrity, and national sovereignty.

Elon Musk’s actions—if confirmed—may constitute fraud, foreign collusion, and threats to U.S. interests under multiple federal statutes.

We respectfully request immediate attention.

Sincerely,
CPA Jim

X's censorship is also evidenced in the following article. 

The Chinese Communist Party’s Transnational Suppression of Lude Media and Dissenting Voices on U.S.-Based Social Media by CPA Jim

中共列宁式组织在社交媒体平台对真相与路德社的打压

Read on Substack
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