GME3: From Lockers to Lockup, SEC-ond Thoughts on Musk & RedNote Strikes a Chord

In this week’s edition of the GME3, we have an update on the case surrounding former Toronto Raptor Jontay Porter, a new suit brought against Elon Musk by the SEC related to how he acquired Twitter in 2022, and a new app that Americans are flocking to as the TikTok ban grows nearer. Read the full stories below!

Gambling

From Lockers to Lockup

Former Toronto Raptors forward Jontay Porter, who pleaded guilty in July 2024 to wire fraud conspiracy for his role in a betting scheme, faces up to 20 years in prison and a lifetime ban from the NBA. Porter’s involvement allegedly included tipping off co-conspirators about his gameplay intentions during NBA matches, allowing them to place targeted bets based on his performance.

Recent court filings shed more light on the scheme. During a January 22 game against the Memphis Grizzlies, Porter sustained an eye injury and texted alleged co-conspirators from the locker room, explaining his limited playtime plans. He wrote:

“I went back to the locker room to get eye checked on. Idk if imma play much more. I’m Not starting second half. But if it’s garbage time I will shoot a million shots.” 

Days later, Porter reportedly texted instructions to another accomplice about betting against specific stat categories, saying he would claim his eye injury to leave the game early.

Authorities recently arrested Shane Hennen, 39, at a Las Vegas airport while he was attempting to flee to Colombia. Hennen, the sixth person charged in the case, was found with multiple phones and $10,000 in cash. Federal investigators allege Hennen also received inside information about Porter’s gameplay for a March 20 match.

While Porter is referred to as “NBA Player 1” in the documents, details about his guilty plea confirm his identity. The case underscores the coordinated effort to manipulate professional sports outcomes for financial gain, casting a shadow over Porter’s basketball career and raising broader concerns about integrity in the sport.

Media

SEC-ond Thoughts on Musk

The SEC has filed a lawsuit against Elon Musk, accusing him of misleading shareholders during his 2022 purchase of Twitter (now X) stock. According to the suit, Musk violated federal securities laws by delaying the disclosure of his Twitter stock acquisitions, which allowed him to buy shares at artificially low prices, underpaying other investors by at least $150 million. Musk disclosed his ownership stake on April 4, 2022, 11 days after the deadline.

The SEC alleges that Musk’s delay harmed investors who sold shares at undervalued prices and is seeking financial penalties and disgorgement of profits. Musk has called the SEC a “totally broken organization” and dismissed the lawsuit as politically motivated. His attorney, Alex Spiro, echoed this sentiment, claiming Musk committed no wrongdoing.

This lawsuit adds to Musk’s ongoing legal battles with the SEC, including a 2018 case over misleading Tesla investors and a 2023 investigation into his X acquisition. The case emerges amidst shifts in SEC leadership, with Gary Gensler stepping down and Trump appointee Paul Atkins poised to take over. Musk, a noted Trump supporter, has also been tapped to lead the newly created Department of Government Efficiency alongside former presidential candidate Vivek Ramaswamy.

The controversy continues Musk’s combative relationship with regulators, highlighting tensions between his business practices and federal oversight.

Entertainment

RedNote Strikes a Chord

As a potential TikTok ban looms in the U.S., users are turning to RedNote, a Chinese social media app, in protest. The ban stems from national security concerns over TikTok’s Chinese parent company, ByteDance. RedNote, known as Xiaohongshu in China, offers features like videos, photos, shopping, and community tools. Unlike TikTok, it is owned by Shanghai-based Xingyin Information Technology and isn’t a direct clone of the platform.

American TikTokers are encouraging followers to download RedNote as a stand against the ban and what they see as favouritism toward Meta, which stands to gain through increased use of its TikTok-like product, Reels. Some users plan weeklong boycotts of Meta apps like Instagram and Facebook if the ban is implemented. On Monday, RedNote became the top free app on the Apple App Store, surpassing TikTok’s sister app, Lemon8.

Users have embraced RedNote with memes and jokes about “Chinese spies,” highlighting their frustration with U.S. lawmakers and the politicization of social media. Many, particularly those who rely on TikTok for their livelihoods, view the ban as harmful to American users. Some see RedNote’s rise in popularity as a symbolic rejection of the ban.

RedNote launched in 2013 and gained traction during the pandemic, now boasting 300 million active users, mostly women. While it could face similar scrutiny as TikTok due to its Chinese origins, its legal status remains uncertain. For now, RedNote has become a rallying point for users determined to resist the ban and preserve their digital communities.