Mining magnate's criminal case against Facebook over fraudulent crypto ads dropped

A bid by mining magnate Andrew Forrest to prosecute Facebook's parent company over an alleged cryptocurrency advertising scam bearing his likeness has failed.

Andrew Forrest accused Facebook of being criminally reckless by allowing bogus ads for a cryptocurrency investment scheme using his image to appear on its site. Source: Getty / Brook Mitchell/Thiago Prudencio/SOPA Images/LightRocket

Key Points

• A criminal case brought by mining magnate Andrew Forrest against Facebook's parent company has been discontinued.
• Forrest accused the social media giant of failing to remove fraudulent ads bearing his likeness from the platform.
• Meta had entered pleas of not guilty to the charges after initially saying it had no case to answer in Australia.

Billionaire Andrew 'Twiggy' Forrest's bid to hold Facebook's parent company Meta to account in Australia over an alleged cryptocurrency clickbait advertising scam has been hindered.

The mining magnate launched a criminal case against the social media giant, accusing it of being criminally reckless in allowing bogus ads for a cryptocurrency investment scheme using his image to appear on its site.

The Commonwealth Director of Public Prosecutions was expected to take over the fight in the WA District Court on Friday, because a private citizen cannot prosecute charges on indictment. But it instead filed a discontinuance notice ending the matter.

Forrest said the decision showed Facebook was "beyond the laws of Australia" and that Australians who had lost savings in the scam were "not protected".

"Scams will continue to run rampant with no recourse for those who are duped by increasingly sophisticated technology on social media platforms that take no responsibility," he said.

"In this case, the Australian legal system was incapable of holding Meta to account for flagrant conduct that causes significant harm to Australian citizens."

Twiggy pledges to continue battle

Forrest said he would continue his battle and campaign for urgent law reform so action could be taken against foreign-owned social media platforms, such as Facebook.

"Meta hides behind the lie that it does not do business in Australia, hiding behind a US entity."

Andrew Forrest said Facebook had "blatantly" refused to take down fraudulent ads on the platform featuring his likeness. Source: AAP / James Ross

When Forrest launched the case in 2022 it was the first time Meta had been prosecuted with criminal charges — three counts of recklessly dealing with proceeds of crime to the value of $1,000 or more — related to its social media platform.

It's alleged the company failed to take sufficient steps to take down the scam ads, that were published in 2019 and feature Forrest and other prominent Australians.

Forrest has said Meta "blatantly" refused to remove thousands of fraudulent scam ads on its platforms despite repeated requests.

Meta had entered pleas of not guilty to the charges after initially saying it had no case to answer in Australia.

Civil case to be heard in the US

Forrest, the founder of Perth-based Fortescue Metals Group, also launched civil proceedings against Facebook in California in September 2021.

That matter is also scheduled to be heard in the US on Friday.

The civil case will determine if Meta is liable for allegedly publishing and not removing thousands of fraudulent ads featuring Forrest's image.

"I'm asking the courts of California, I will ask the courts of Australia, to fix this illegal or improper content rapidly," Forrest said.

If successful, it could force Meta to be more accountable for fraudulent content on its platforms in Australia and globally.