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Australian Billionaire Forrest’s Crypto Ad Lawsuit Against Meta Proceeds

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2 weeks ago

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U.S. District Judge Casey Pitts has ruled against Meta Platforms’ motion to dismiss a lawsuit filed by Australian billionaire Andrew Forrest. The litigation centers on Forrest’s allegations that Meta negligently allowed fraudulent cryptocurrency advertisements featuring his image on Facebook, leading to substantial financial losses for victims.

Judge Advances Forrest’s Lawsuit Against Meta

Andrew Forrest, known for his role as the executive chairman of Fortescue Metals Group, has pursued legal action against Meta, claiming the tech giant failed to prevent the misuse of his likeness in crypto scam ads. These ads, which promoted bogus investment opportunities, reportedly appeared over a thousand times between April and November 2023, primarily targeting Australian users. Forrest argues that Meta’s ad systems might not be as neutral as claimed, suggesting they could contribute to the deceptive nature of the content.

Moreover, Forrest contends that Meta profited more from scam ads than it would have from legitimate advertising. This assertion forms the basis of his claim that Meta benefited from the misuse of his image, thus breaching its duty to operate responsibly. The judge’s decision to let the case proceed indicates a potential shift in how legal responsibilities are interpreted for social media platforms under U.S. law, particularly concerning Section 230 of the Communications Decency Act, which traditionally shields platforms from liability for third-party content.

Legal Ruling May Tighten Social Media Ads

This ruling marks a pivotal moment. It is reportedly the first time a U.S. court has not allowed a social media company to use Section 230 as a defense in a civil lawsuit concerning its advertising practices. The outcome could set a precedent affecting how social media giants monitor and manage content, potentially leading to stricter scrutiny and higher standards for ad verification processes.

Forrest’s pursuit of compensatory and punitive damages highlights his broader campaign to hold social media accountable for facilitating financial scams. His stance has resonated with many victims of similar fraudulent schemes, emphasizing the need for more rigorous controls and transparent practices in digital advertising.

Amid these legal challenges, Meta has announced significant organizational changes, including reducing the number of vice-presidential roles. Approximately 50 executive positions are expected to be cut as the company aims to streamline operations and reduce costs. This strategy reflects Meta’s efforts to adapt to a tough economic environment and maintain its competitive edge in technology.

Also Read: Ronin Enters Layer 2 zkEVM Scene With Polygon CDK

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Ripple and Coinbase Use Binance Win to Contest SEC Claims

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9 hours ago

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July 2, 2024

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Coinbase and Ripple Labs are using Binance’s pivotal legal victory to challenge ongoing cases with the U.S. Securities and Exchange Commission (SEC). Both companies argue that the SEC’s approach needs more clarity and consistency, necessitating formal rulemaking to better define the regulatory perimeter for digital assets.

Ripple, Coinbase Cite Binance Case Against SEC

Ripple Labs and Coinbase have intensified their legal defenses by referencing a recent court order involving Binance, which achieved a partial dismissal in its SEC lawsuit. The companies argue that this precedent highlights the need for the SEC to establish clear regulations. In its latest court filing, Ripple emphasized the judge’s remark that cryptocurrency does not align seamlessly with existing securities laws, such as those established by the 1946 Howey Test. This test is crucial for determining whether a transaction qualifies as an investment contract and thus falls under securities regulation.

 

Coinbase has concurrently voiced concerns over the SEC’s expansive interpretation of securities laws applied to the crypto industry. The exchange asserts that this broad application could be more extensive and better defined, pushing for a definitive rulemaking process to provide legal clarity. In its appeal, Coinbase cited the recent Binance ruling to bolster its case for rulemaking, arguing that the decision underscores the inconsistencies in current regulatory applications.

 

Also Read: Bybit Exchange Unveils Support For ASI Alliance, Will FET Rebound?

Coinbase Demands Clarity in SEC Regulatory Battle

The SEC has engaged with various cryptocurrency platforms and assets, deeming some of their operations as securities offerings without proper registration. In the case of Ripple, the SEC’s lawsuit initiated in December 2020 alleged that Ripple raised over $1.3 billion through sales of its XRP token, which the SEC classified as an unregistered security. However, in a significant turn, Judge Analisa Torres ruled that certain “programmatic sales” of XRP did not constitute securities transactions, introducing a nuanced interpretation Ripple now seeks to leverage to challenge broader SEC claims.

 

Coinbase faces similar regulatory scrutiny. The SEC argues that the platform operated as an unregistered securities exchange, a claim that Coinbase refutes, urging a formal rulemaking process to clarify these regulatory boundaries. Both Coinbase and Ripple use recent judicial outcomes, notably the Binance case, to argue for a more structured and transparent regulatory framework from the SEC, stressing that the current state of affairs is inefficient and unclear.

Crypto Firms Rally Around Binance Court Decision

The partial victory for Binance in its own SEC lawsuit has become a strategic reference point for other crypto entities embroiled in legal challenges with the regulator. Despite Judge Amy Berman Jackson’s decision to proceed with most of the SEC’s claims against Binance, her dismissal of the charge regarding secondary sales of Binance Coin (BNB) as securities has been perceived as a significant legal precedent. Coinbase and Ripple have particularly highlighted this aspect of the ruling in their ongoing litigation.

 

Further developments are anticipated, with a scheduled conference for the SEC’s case against Binance set for July 9. Meanwhile, Coinbase and Ripple continue to press for regulatory clarity, which they argue is crucial for the industry’s stability and growth.

 

Also Read: Genesis Digital Is Considering Going Public Via IPO In US: Report

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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U.S. Election Won’t Alter Positive Crypto Regulations, Says Mike Novogratz

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12 hours ago

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July 2, 2024

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Galaxy Digital founder and CEO Mike Novogratz believes the U.S. crypto sector is poised for positive regulatory developments regardless of the outcome of the upcoming presidential election. Speaking on CNBC’s ‘Squawk Box,’ Novogratz expressed confidence in the future of crypto regulation, citing a bipartisan approach as a key factor.

Mike Novogratz Predicts Bipartisan Crypto Support in US

Mike Novogratz emphasized that the crypto industry enjoys support from both major political parties in the U.S. He acknowledged that while some Democrats, notably Senator Elizabeth Warren and a small group of others, have been critical of the industry, the majority are pro-innovation and pro-crypto. This broad support suggests favorable regulatory changes are imminent, regardless of who wins the next election.

 

The billionaire CEO underscored the importance of a bipartisan stance on crypto, arguing that partisan disagreements should not hinder the industry’s growth. He stated that crypto needs to be a bipartisan issue to avoid regulatory instability, which can deter innovation and investment. Mike Novogratz’s remarks highlight the growing recognition of the potential benefits of crypto technology across the political spectrum.

 

Despite the current regulatory uncertainties and occasional government crackdowns, Mike Novogratz is optimistic about the future. He believes the situation is shifting towards more clarity and support for the crypto sector. This optimism is driven by the increasing number of lawmakers who recognize the importance of fostering innovation and the potential economic benefits of the burgeoning industry.

 

Novogratz pointed out that the frustrations stemming from regulatory ambiguity are being addressed as more politicians understand the significance of crypto. He predicts the next administration will enact favorable crypto legislation regardless of political affiliation. This legislative support is expected to provide the industry the stability needed to thrive and innovate.

 

Also Read: Binance Unveils Changes In Turkey In Compliance With Regulation

Novogratz: Bitcoin Essential Amid Economic Concerns

Commenting on Bitcoin’s recent performance, Mike Novogratz referred to the price surge following the approval of a Bitcoin ETF, which pushed the cryptocurrency’s value above $73,000 in March. Bitcoin (BTC) will likely trade within the $55,000 to $73,000 range until new market-moving news emerges. This range reflects a period of consolidation after a significant upward move.

 

Mike Novogratz reiterated his belief that Bitcoin remains a crucial asset for any investment portfolio, especially given the current economic conditions. He highlighted concerns about the growing U.S. debt and government spending, which he described as akin to “spending like drunken sailors.” In such a financial environment, Novogratz argues that Bitcoin offers a hedge against fiscal irresponsibility and inflation.

Also Read: Circle Rolls Out New Ad Calling on Common Sense US Stablecoin Regulation

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Tether Inks MoU With BTguru to Boost Crypto Freedom in Turkey

Published

16 hours ago

on

July 2, 2024

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Tether, the company behind the USDT stablecoin, has partnered with Turkish crypto firm BTguru. This collaboration formalized through a memorandum of understanding (MoU), aims to promote the use of digital assets and blockchain technology across Turkey. The partnership focuses on developing educational programs and exploring new business avenues within the country’s banking and financial sectors.

Tether and BTguru Boost Turkey’s Crypto Framework

The MoU between Tether and BTguru marks a significant step towards integrating digital assets into mainstream financial operations in Turkey. The agreement outlines plans to create educational initiatives to acquaint private and public stakeholders with the benefits of cryptocurrencies and blockchain technologies. Moreover, these programs intend to elevate the understanding and responsible use of these technologies across diverse sectors.

Furthermore, Tether and BTguru are set to investigate the potential of peer-to-peer (P2P) technologies. They will leverage BTguru’s extensive network to facilitate dialogues with critical financial institutions, aiming to foster a broader acceptance and integration of digital assets within traditional banking frameworks. This partnership aspect underscores a strategic move to bridge the gap between conventional banking and the evolving crypto landscape.

In addition to educational efforts, the partnership will explore practical technology applications in the financial sector. One of the primary areas of focus will be the tokenization of real-world assets. This initiative offers banks novel ways to handle assets digitally, potentially transforming how assets are managed, traded, and secured.

Another critical collaboration area involves assessing the viability of regional payment networks that could operate using digital currencies. By exploring these possibilities, Tether and BTguru aim to enhance the efficiency, security, and accessibility of financial transactions across the region. These explorations are timely, as Turkey shows a high rate of cryptocurrency adoption, with significant portions of its population actively engaging in crypto transactions.

Also Read: Robinhood Plans to Introduce Crypto Futures In US and Europe Very Soon

Regulatory Improvements Boost Turkey’s Crypto Appeal

The expansion of Tether into the Turkish market is strategically significant. Recently, Turkey has shown a rapid increase in cryptocurrency adoption, making it an essential player in the global crypto economy. This is evident from its high transaction volume and the notable percentage of GDP represented by stablecoin purchases.

Tether’s partnership with BTguru coincides with Turkey’s improved regulatory environment. Following its removal from the Financial Action Task Force’s (FATF) gray list, Turkey has demonstrated substantial progress in enhancing its anti-money laundering and counter-terrorist financing protocols. This regulatory advancement makes Turkey an even more attractive market for cryptocurrency firms looking to expand their operations.

Also Read: Court Grants Consensys Request For Expedited Hearing Against The SEC

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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