on the crypto
Well, things are certainly not going well for social media giant Facebook (Facebook shares - FB ticker). Andrew “Twiggy” Forrest, the Australian billionaire is suing Facebook for scamming cryptocurrency advertisements running on the platform under his name. The billionaire accused Facebook of violating Australian money laundering laws.
Australians have lost millions of dollars
Andrew Forrest said Facebook knowingly profited from this "illegal ad cycle" which it failed to remove. By consulting Attorney General Michaelia Cash, Forrest is pursuing these charges under part 10 of the Commonwealth Criminal Code.
The initial hearing will take place next month, March 28, in the Western Australian Magistrates court. A preliminary hearing will follow later in 2022.
Court records note that one of the victims lost nearly A million dollars, while other victims were scammed for millions of dollars. However, lawyers representing the billionaire said they do not "know the precise number or identity of individuals defrauded as a result of this scam, the extent of the damage is vast." The court documentation further reads:
“These scenarios occurred in the underlying scam that used Dr. Forrest's name, image and reputation to find victims, who often reported being scammed after believing that Dr. Forrest was actually approving the scheme. investment".
Andrew Forrest - Facebook is criminally reckless
The Australian billionaire said he has spent hundreds of thousands of dollars distancing himself from cryptocurrency scams on Facebook since March 2019. Thus, he calls Facebook "criminally reckless" for its inability to remove fraudulent ads.
The complaint also adds that Facebook's access to user data has been a major "contributor to the proliferation of illegal advertisements," fake news "and other unwanted internet material."
A Facebook spokesperson told The Australian magazine, which is taking a multi-pronged approach to stopping these ads leading to cryptocurrency scams. But the Australian billionaire notes that Facebook isn't doing enough of them despite repeated warnings. Forrest added:
"Facebook has shown little desire for self-regulation or to take basic measures to protect Australians from misuse of its platform by scammers, so I have no choice but to take this action."
If the Australian court finds Facebook guilty, the company could face heavy fines. Furthermore, it could also lead Facebook to withdraw its recent decision to allow certain cryptocurrency ads. Facebook faced major regulatory challenges. The company also decided to withdraw its Diem project due to strong regulatory pressure.
Meta stock falls by 22%
In the aftermarket hours on Wednesday 2 February, the Meta stock fell by more than 22%. This fall was a reaction to the company that released its Q4 2021 numbers.
