Elon Musk's X, formerly Twitter, has filed an objection to the pending bankruptcy sale of Alex Jones’s Infowars accounts to the satirical news outlet The Onion.

What Happened: The objection was submitted on Monday as part of Jones's bankruptcy proceedings, over his false claims regarding the Sandy Hook Elementary School shooting.

His assets, including Infowars, are being sold off in the wake of a defamation lawsuit filed by the families of Sandy Hook victims, which led to a $1.5 billion verdict against him.

Musk's platform argued that its terms of service prevent the sale or transfer of Jones's X accounts without the company’s approval.

See Also: Bluesky Adds Millions Of Users As Elon Musk’s X Faces Exodus Post Trump Victory: Here Are A Few Starter Packs To Help You Level Up On The Platform

While X does not oppose the sale of Infowars’ content, it insists that it retains ownership of the accounts, which it says are not part of Jones’s assets in bankruptcy proceedings. 

The bankruptcy judge is considering whether to approve the trustee’s selection of The Onion as the winning bidder for Infowars assets.

The Onion’s bid of $1.75 million in cash was chosen over First United American Companies (FUAC)’s $3.5 million offer, as it benefits Jones’s other creditors more. 

FUAC has objected, alleging improper collusion. A hearing is set for next month to address the sale.

This development was first reported by The Hill.

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Why It Matters: The objection from X comes amid a series of challenges for the platform. Earlier this month, it was reported that X faced another wave of layoffs, particularly impacting its engineering department.

X has seen a shift in its user base, with Taylor Swift fans reportedly migrating to Bluesky following Musk’s support for President-elect Donald Trump.

Despite these challenges, major advertisers like IBM and Disney have returned to X after a year-long boycott, signaling a potential recovery in brand trust.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.