Twitter is scrambling to deal with a report written by its former head of security, Peiter “Mudge” Zatko. The former “ethical hacker” has blown the whistle on the company’s security and privacy practices, alleging Twitter has repeatedly misled directors and users about the product, according to Whistleblower Aid, a nonprofit legal organization in Washington, D.C., representing Zatko.
The report was filed with the Securities and Exchange Commission, the Federal Trade Commission, the Department of Justice and Congressional committees. The Washington Post and CNN first reported on the documents after obtaining them from sources in Congress.
As Elon Musk battles to end his $44 billion bid for the company, these new revelations have provided hard evidence that could potentially factor into his claim that Twitter did not meet the terms of their agreement, per Reuters.
Musk vs. Twitter
On Monday, Musk subpoenaed Jack Dorsey, in his legal battle to end his bid to buy Twitter, according to Axios. In May, Musk tweeted that his $44 billion deal to acquire the social media company was on hold, pending more accurate data on the number of fake and spam accounts present on the site.
Twitter then filed a lawsuit to force Musk to go through with the acquisition, while Musk claims the company “failed to meet its contractual obligations,” per Axios. Much of this legal activity hinges on Twitter’s honest representation of its product, and fake users are a meaningful element of that valuation.
Zatko has accused the company of misleading its directors and users, specifically on the grounds of spam bots, according to the report. A full section of the document outlines how Twitter’s current CEO Parag Agrawal allegedly lied to Musk about bots and the quantification of fake users on the site.
The report also states that “deliberate ignorance was the norm amongst the executive leadership team.” Zatko’s team spoke with an internal source that said “if accurate measurements ever became public, it would harm the image and valuation of the company.”
Tuesday, Musk issued a series of tweets commenting on Zatko’s report, especially as it relates to his acquisition.
Alex Spiro, from Musk’s legal representation in this suit, told The Washington Post they have issued a subpoena for Zatko. Zatko’s attorney from Whistleblower Aid said there had been no interaction with Musk’s team before the publication of the report.