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Senators pen letter urging Zuckerberg and Meta to step up their combat against crypto scams

Mark Zuckerberg and Meta urged by Senators to up their ban on crypto scams on their platforms
Mark Zuckerberg and Meta urged by Senators to up their ban on crypto scams on their platforms

Image source: CNET

While Mark Zuckerberg and Meta have been focused on building the metaverse, US senators have asked him about Facebook’s crypto scam combat.

With the number of crypto scams going around on the platform, concerns have been brewing.

The senators issue a letter

On Friday, a group of senators led by Democrat Bob Menendez of New Jersey issued a letter to the Meta founder.

The letter requested that the firm provide information regarding its effort to ward off cryptocurrency-related scams on Facebook, Instagram, and WhatsApp.

Menendez and his colleagues also alleged that the company creates a breeding ground for cryptocurrency fraud, causing significant harm to its users.

Among the signees are Senate Banking Committee Chairman Sherrod Brown and Senators Elizabeth Warren, Bernie Sanders, Cory Booker, and Dianne Feinstein.

“While crypto scams are prevalent across social media, several of Meta’s sites are particularly popular hunting grounds for scammers,” the Senators wrote.

They also noted that of the consumers reporting about cryptocurrency, 32% said the fraudulent activity occurred on Instagram, 26% on Facebook, and 9% on WhatsApp.

Criticism and concern

Senator Menendez’s website features a statement citing his long history of criticism of Facebook.

He has called out the social media platform for allowing controversial content, such as misinformation about COVID-19, the US elections, and the Russian invasion of Ukraine.

The Senators included in their letter how concerned they are about Meta’s effort to stop misinformation from being spread in Spanish.

They asked that the platform provides warning or educational material regarding crypto scams beyond the English language.

Senators are asking Meta to detail the company’s current policies, including the practice of identifying and removing crypto scammers.

They also want to know how the social media platform verifies that the crypto ads seen aren’t scams.

The Senators are also questioning Meta’s policies for educating and protecting users, collaborating with law enforcement for certain situations, and removing scammers from the company’s platforms.

Previous ban

In the letter they penned, the Senators brought up Facebook’s ban on crypto-related ads on the platform in January 2018.

Back then, the social media platform said companies that advertised binary options, initial coin offerings (ICOs), and cryptocurrencies were not operating “in good faith.”

Facebook claimed the ban would prevent scammers from making a profit with a presence on the platform.

“This ban clearly shows that you understand the risks posed by this type of content to users,” the Senators wrote in their letter.


Warren, Sanders, and other Senators demand Meta to do more to combat crypto scams

Opinions expressed by Coin Week contributors are their own.