This is toxic. The article is right, this should be illegal, and there should be a supreme court ruling to make sure this can't happen.
The implications for social mobility are egregious. It's difficult enough for those who come from lower-income backgrounds to succeed, meet the right people, and flourish. Now we're looking at dictating the access to capital somebody has based on not merit, not individual trustworthiness, not potential... but the sum of their friends? This creates even more of a positive feedback loop for the status quo at each and every level of income, making it harder to move up or down.
Not okay with this. Zuck, or somebody that can, needs to squash this.