Big Tech Docket: Meta in court for Instagram, WhatsApp acquisitions
(Westlaw) Meta faces trial for alleged anticompetive activity, while Elon Musk’s unprecedented access to sensitive government data continues to raise alarms.
Here’s a roundup of recent events in the world of Big Tech.
Zuckerberg takes the stand
Despite Mark Zuckerberg’s efforts to lobby President Donald Trump to settle the government’s antitrust case against Meta Platforms Inc., the tech titan found himself on the witness stand facing the Federal Trade Commission’s questions April 14. According to the FTC, Meta engaged in anticompetitive behavior when it bought Instagram and WhatsApp to ward off competitors. A ruling against Meta could result in a forced divestiture of the two apps. Federal Trade Commission v. Meta Platforms Inc., No. 20-cv-3590 (D.D.C.).
DOGE data access, alleged breach
Two recently fired Democratic FTC commissioners are questioning exactly what FTC data Elon Musk’s Department of Government Efficiency has access to and who is looking at it, Reuters reports. Former Commissioners Rebecca Slaughter and Alvaro Bedoya made a statement expressing concerns that nonpublic financial data and company data such as that reported by Musk’s business rivals is not being handled securely, noting that “this data can move markets.” Slaughter and Bedoya are also suing over their dismissals.
An information technology worker at the National Labor Relations Board has notified nonprofit Whistleblower Aid that a “significant cybersecurity breach” may have occurred at the agency. Whistleblower Aid used the insider info to file a complaint to the Senate Intelligence Committee alleging that DOGE team members tampered with user protocols and later removed a chunk of data from the NLRB’s network. According to Reuters, the staffer testified that his superiors stymied his attempt to report the alleged breach.
Banks allegedly infringing data security patents
Technology company DigitalDoors Inc., which has filed dozens of patent infringement lawsuits against financial institutions, has now targeted New York City-based Metropolitan Commercial Bank. In a complaint filed in Manhattan federal court, the company alleges that the data security software the bank uses mimics patented systems. Like the other suits, this one alleges infringement of patents that describe processes to protect and retrieve sensitive digital information. The complaint says Metropolitan has a policy of being “willfully blind” to what patented technologies are available when it implements a data security system and instructs its employees “to not review the patents of others for clearance or to assess infringement thereof.” DigitalDoors Inc. v. Metropolitan Community Bank, No. 25-cv-2891, complaint filed, 2025 WL 1047473 (S.D.N.Y. Apr. 8, 2025).
Digital hunt for protesters
Having labeled pro-Palestinian speech as “antisemitic,” the Trump administration now turns the Department of Homeland Security’s resources to trawling immigrants’ social media posts to deny or withdraw legal status based on any such speech. Human rights advocates, including some Jewish groups, have condemned the action, saying it mislabels criticism as antisemitism, according to Reuters.
Yahoo data collection alleged
Yahoo Inc. has been secretly collecting and monetizing user data from hundreds of millions of U.S. residents, according to two lawsuits filed in Manhattan federal court. Both suits say that Yahoo’s ConnectID program not only identifies users without their knowledge or consent, but also profiles them and allows the company to profit from selling the information to advertisers. Caplan v. Yahoo Inc., No. 25-cv-2943, complaint filed (S.D.N.Y. Apr. 9, 2025); Baker v. Yahoo Inc., No. 25-cv-2797, complaint filed (S.D.N.Y. Apr. 3, 2025).
Clearance vengeance
Trump has retaliated against a cybersecurity company for hiring one of his former appointees who refused to back up the false claim that the 2020 presidential election was stolen. The president canceled the security clearances of SentinelOne Inc. on April 9 after it hired Chris Krebs as its chief intelligence and public policy officer. Krebs headed the Cybersecurity and Infrastructure Security Agency during Trump’s first term and was fired over Twitter when he said Trump had lost the election. According to Reuters, the largest cybersecurity companies refused to comment on the move.
John Fitzgerald contributed to this article.
By Kteba Dunlap, Esq.
SEC Closes Investigation Into NFT Gaming Project CyberKongz
(Syndigate) Gaming NFT CyberKongz called its legal fight a stand for Web3 and said a full rebrand and new direction will be revealed soon. Last updated: April 16, 2025 01:24 EDT Crypto Reporter Shalini Nagarajan Crypto Reporter Shalini Nagarajan About Author
Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.
Author Profile Share Copied Last updated: April 16, 2025 01:24 EDT Why Trust Cryptonews Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
The US Securities and Exchange Commission has formally closed its investigation into CyberKongz, a prominent Ethereum-based NFT and gaming project, with no enforcement action taken, the team announced on Tuesday.
CyberKongz described the decision as a landmark moment, ending what it called years of “unjust allegations, crippling legal fees, and the biggest hurdle we could possibly encounter.” The project, known for its pixelated primate avatars and immersive metaverse-style gaming experiences, had become a symbol of regulatory uncertainty in the Web3 space.
In December, CyberKongz received a Wells notice from the SEC, which the project said reflected a confusing stance on how smart contracts function.
One of the main issues raised by the regulator was the alleged sale of Genesis Kongz in April 2021. However, the team clarified this was not a token sale but a contract migration. They argued that if the SEC cannot tell the difference between a primary sale and a technical update, it raises serious concerns about the clarity of current crypto regulations.
SEC’s Enforcement Eases Following Trump’s Return
The announcement comes as the SEC begins to ease its posture toward crypto companies.
In line with this shift, the agency has recently paused or dropped several high-profile investigations. These include cases involving Coinbase, Kraken, Robinhood, Immutable and Consensys. At the same time, some probes, like those into Binance and OpenSea, remain open. However, the overall trend points to a softer enforcement approach than in previous years.
This shift in approach coincides with a political transition in Washington. The second Trump administration took office in January, followed by the resignation of SEC Chair Gary Gensler.
Days later, the agency launched a new Crypto Task Force to develop clearer rules for the industry, marking a turn toward regulatory clarity and collaboration.
CyberKongz Says Victory Signals Hope for Builders Across Web3
CyberKongz was founded by a group of artists and developers. It first gained traction in 2021 during the NFT boom. The project featured uniquely generated gorilla avatars that attracted a cult following. It later expanded into a larger gaming and metaverse ecosystem. The team described its legal battle as a stand for the entire Web3 space, not just itself.
“We are a small, passionate, and creative Web3 team that elected to fight this battle for the betterment of Web3,” the project said. A full rebrand and new direction will be announced soon, it added.
The case is now closed. CyberKongz said it hopes the outcome will inspire other blockchain projects to keep building with confidence. “It should be celebrated by all that our space is here to stay,” the team said.
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