A number of cryptocurrency associations and companies from countries including South Korea, Russia and China have apparently decided to file a class action lawsuit against internet advertising companies and social platforms that have decided to ban cryptocurrency and ICO advertisements. This lawsuit, which seeks to challenge the restrictions put in place by Facebook, Google and Twitter, was a collaborative effort of the participants at a recent cryptocurrency conference in Moscow, news.bitcoin.com first reported.
According to sources, the newly formed Eurasian Blockchain Association will file the suit in U.S. courts by May. This newly-formed association is made up from representatives from the Russian Cryptocurrency and Blockchain Association (RACIB), the Korea Venture Business Association (KOVA) and the Chinese Association of Cryptocurrency Investors (LBTC). These associations signed the agreement during the BlockChainRF-2018 Congress in Moscow. The sources also confirmed that a special crypto fund will be created to raise funds for this class action lawsuit and which is also accepting donations.
The advertising bans put in place by Facebook and Google have hit the cryptocurrency markets extremely hard with drops in values of around 50-60% in some cases. Twitter has also started banning cryptocurrency and ICO-related advertisements on its platform, dealing another blow to the industry which continues to decline considerably in value. At press time, the total market cap of crypto currencies has fallen below the $300 billion mark, almost a third of the value of one media conglomerate, Google. Another social networking site, Snapchat, is reportedly also considering an ICO ban.
RACIB President Yuri Pripachkin told Russian news outlet TASS that cartel collusion was one of the main points of the lawsuit.
“We think these four companies are using their monopoly power and have colluded to manipulate the market,” Pripachkin said, according to the news outlet. There has still not been a decision which U.S. state the suit will be filed, but Pripachkin indicated that this will be a state that has a positive stance towards cryptocurrency development, such as Wyoming.
In a separate story, it appears that Russia is losing big money on ICOs that are being set up by Russian businessmen abroad in more favourable business jurisdictions. A report states that up to $1.5 billion is being withheld from the Russian state coffers. However, this might change as the State Duma is expected to discuss two laws regarding blockchain technology, mining, cryptocurrency and ICOs.