The social media giants Google, Facebook, and Twitter are facing a $300 billion class-action lawsuit by cryptocurrency entrepreneurs, individuals, and companies for banning crypto and blockchain ads.
The class-action claim, which was filed in a court in Australia, will be represented by a Sydney-based law firm, JPB Liberty.
In 2018, all the three industry giants banned crypto ads one after another, claiming that it would be misleading and that it’s a scam in which people could lose their money.
JPB Liberty said,
“A class action will be brought in the federal court of Australia against the social media giants’ Australian subsidiaries and parent companies for breaches of the Australian Competition and Consumer Law.”
Since there were only a few regulated exchanges in 2018, the ad ban affected the entrepreneurs’ business growth, as they were not allowed to use the world’s biggest advertising platforms to reach potential customers.
Google announced that it will partially revoke the ban in September 2018, allowing crypto ads on regulated crypto exchanges in the US and Japan.
In 2019, Facebook reversed its decision, saying that ads will go only through a review; pre-approval for ads related to crypto and blockchain will not be required.
The ads ban on Twitter was not revoked, but it will allow ads only if the advertising done by a public company that is listed on the stock exchange. More claimants who were adversely hurt by the crypto ad bans are expected by the law firm to join the lawsuit.
Funding for the case is organized by JPB Liberty from venture capital firms, institutional litigation funders, and investors. If the lawsuit is successful, claimants are expected to get 70 percent of any settlement while the funders will receive 30 percent.