Australian billionaire sues Facebook for allowing crypto adverts using his name

Andrew “Twiggy” Forrest, an Australian billionaire, is suing the social media giant Facebook over allegedly fraudulent cryptocurrency adverts that utilized his identity to mislead victims.

The head of Fortescue Metals claims that Facebook is breaking Australian anti-money laundering rules by “knowingly profiting from this cycle of illegal ads” that it neglected to remove.

Australian mining magnate Andrew ‘Twiggy’ Forrest is suing social media giant Facebook over an issue that’s angered him for years.https://t.co/9OqA4FLrOG

— news.com.au (@newscomauHQ) February 3, 2022

Australian victims lost millions in these frauds

An initial court appearance is set for March 28 in the Western Australian Magistrates Court, with a committal hearing set for later in 2022.

With the direction of Attorney-General Michaelia Cash, Forrest is initiating the charges under Part 10 of the Commonwealth Criminal Code.

According to the court documents, one Australian victim lost $952,000 AUD in the scam. The scheme “defrauded victims out of millions of dollars,” says the filing. A couple, last year, lost more than $100,000 in a scam.

“These scenarios played out in the underlying scam which used Dr. Forrest’s name, likeness, and reputation to find victims, who often reported being swindled after believing Dr. Forrest was actually endorsing the investment scheme.”

“While we do not know the precise number or identities of the persons defrauded as a result of this terrible scam,” Forrest’s lawyers said, “the scope of the harm is vast.”

They went on to say that since March 2019, when the scam first started being advertised on Facebook, he has spent “hundreds of thousands of dollars” to dissociate himself from it.

According to the complaint, Facebook’s access to user data has been a major “contributor” to the spread of illicit adverts, “fake news,” and other undesired online content. The company’s inability to remove the fraudulent ads was “criminally reckless,” according to Forrest.

Scams are not new

In 2019, Forrest was one of several Australian celebrities, including Kate Winslet, who was falsely cited giving a testimonial for a fraudulent cryptocurrency. In one fraud, the celebrities were mentioned in fake mainstream news articles promoting a fake Bitcoin investment platform.

The Australian Securities and Investments Commission issued a warning in 2020 about fake celebrity-endorsed cryptocurrency ads, which included Australians like Hugh Jackman, Nicole Kidman, and Waleed Aly.