Are Facebook, Google and other social media companies that are banning cryptocurrency ads being sued?

It has been reported by Russian News agency TASS, that the Eurasian Association of Blockchain intend to file a joint lawsuit in May 2018 against social media giants Google, Twitter, Facebook, and Yandex for refusing to allow crypto-related advertising on their sites. The suit will be filed in May 2018.

What countries make up the Eurasian Association of Blockchain?

The association was originally made up of global associations headquartered in Russia, China, and South Korea. Specifically, the Russian Association of Cryptocurrency and Blockchain (RACIB), the Korea Venture Business Associations, and LCBT, along with a Chinese association of crypto investors formed the association. Other Cryptocurrency and Blockchain organizations that have joined the Eurasian Association are located in Switzerland, Kazakhstan, and Armenia. Reports indicate that the most recent members of the joint lawsuit include the Swiss InnMind fintech firm, the Armenian Blockchain Association, and the Kazakhstan Blockchain and Cryptocurrency Association.

Why was the Eurasian Association formed?

These organizations created the Eurasian Association of Blockchain to give them the ability to raise funds to initiate, support and formulate the lawsuit. It also allows them to act as one unified body.

What are the Social Media Companies being accused of in regards to banning cryptocurrency ads?

The Russian Association of Crypto-Currency and Block-Finish (RACIB) head, Yuri Pripachkin has made a number of accusations regarding the actions of the social media companies named in the suit, claiming their new advertising policies are illegal. The main claim against the social media companies is collusion, defined as the act of conspiring with others to increase the economic benefit of those in the group. Pripachkin said that even a single refusal to place cryptocurrency advertising constitutes collusion.

The basis of the lawsuit is the assertion that the four companies in question have entered into a cartel agreement intended to influence market conditions related to cryptocurrencies. The Eurasian Association has stated that the actions of the companies named in the suit are meant to establish a monopoly position and have negatively affected the cryptocurrency market. RACIB officials assert that the ICO ban alone could result in Russia’s economy losing $1.5 billion in the next few years. It is estimated that the ICO’s which are held by Russian nationals living abroad account for over 10% of the global ICO market. It is believed that these holdings will suffer a significant loss due to the social media ad ban. Considering such huge losses it is not expected that the coalition will give up the lawsuit or settle out of court unless the ad bans are reversed and a large fine is levied against the social media companies with the proceeds given to the Eurasian Association

In addition to the collusion allegations, Pripachkin also accused Twitter management of allowing users and shareholders to purchase a cryptocurrency subscription created exclusively for the Twitter community while banning all others. He said the various actions of the four social media corporations individually and together have resulted in a 50 percent drop in the cryptocurrency market in the first three months of 2018. Indicators suggest that the market is likely to keep crashing should the courts not prevent social media companies that have already banned ads from continuing to do so and preventing others from jumping on the bandwagon, Pripachkin warned.

A representative of the Association stated that they will also file claims against any shareholders of the companies being sued if it is determined they own and benefit from crypto wallets. It is unclear how the they intend to connect personal ownership of crypto wallets to corporate advertising of cryptocurrency.

Where and when will the Eurasian Association of Bitcoin file the lawsuit against the social media companies?

The association intends to file the suit in the U.S. since they believe certain states to be cryptocurrency “friendly.” In particular, the state of Wyoming has been mentioned as the state legislature there has passed laws which exempt cryptocurrency related earnings from state property taxes. Wyoming has also been seen to relax securities regulations. It is currently believed the lawsuit will be filed in the New York district court with the claimant being an unidentified Luxembourg-based crypto fund. Class action suits are also expected to be brought in other U.S. jurisdictions including cryptocurrency friendly states such as Wyoming and states where the social media company headquarters are located. The suit will be filed in May 2018.

Is the founder of the finance site MoneySavingExpert.com suing Facebook?

Martin Lewis,the founder of MoneySavingExpert.com, and a prominent finance journalist filed a lawsuit in the UK against Facebook in April 2018 which still hasn't been settled or adjudicated. He is accusing Facebook of defamation of character, alleging that they have published more than 50 cryptocurrency ads using his name and face to promote cryptocurrency get rich quick scams. The clickbate titles such as "Stay Safe During the 2018 Crash by Doing this Even with £250" which would link to fake BBC-like articles. Martin has been fighting since early 2017 that even when Facebook takes ads down, they allow new ones to be put up.