Cryptocurrency News Today – Facebook Files Lawsuit Against Entrepreneur Who Promotes COVID-19 Crypto Scam – April 10th, 2020 

  • Tech and Social Media Giant, Facebook Has Filed a Lawsuit Against an Entrepreneur
  • The Entrepreneur is Being Sued For Using The COVID-19 Pandemic To Promote Cryptocurrency Scams
  • Cryptocurrency Prices Struggle Against the USD After Slight Recovery 

Cryptocurrency News Today – Facebook is usually at the receiving end of a lawsuit but the case is different this time. Instead of being sued, the tech and social media giant is suing an entrepreneur who they accuse of using the Coronavirus pandemic as an avenue to cheat people through cryptocurrency scams. The name of the entrepreneur in question is Basant Gajjar. The entrepreneur allegedly used his software, LeadCloak, as a hunting ground for scammers who intend to scam people and share face news.

Cryptocurrency News Today – Cryptocurrency and COVID-19 Scams Get The Attention of Facebook

The LeadCloak software is being used, not just by Basant, but by other companies to scam people and spread fake news about the Coronavirus pandemic. Rather than take responsibility for the information and control the spread of fake information being shared on the platform, Gajjar did nothing. Now, if they are going guilty during the trial, Gajjar and all the companies associated with his platform will suffer the consequences. For starters, all the accounts will be terminated and the software may be terminated as well.

The LeadCloak software has been known to cloak content that is posted on it. This means that it uses shady techniques to publish information. The stories posted on through the platform are either lies, unclear, or half-truths. Information that is posted on a website or social media is replaced with malicious links or products. So, when you think you’re visiting a regular page to get information about Coronavirus, you’re only exposing yourself to fraudsters.

In 2017, Facebook noticed that people were using LeadCloak to get restricted content advertised on its network. For example, Facebook has a policy against approving cryptocurrency-related ads. Websites like LeadCloak, hide the true content of the ad with something else just to get it approved. Now, people are using Coronavirus headlines to advertise cryptocurrency which is ordinarily not permitted on Facebook. The company has been trying hard to kick out these ad cloakers because it is costing them money.

In May 2019, the social media giant lifted its ban against cryptocurrencies in a bid to discourage cloakers and make them come for pre-approval. Unfortunately, this hasn’t stopped scammers from using this cloaking technique, especially for other restricted products. The company hopes that its lawsuit against Gajjar will set an example for others.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.


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