lol "illegally uploaded contacts" contacts are public knowledge. you dont want someone to share it dont give it to that person .
Tragically even "secure" apps like Telegram does this.
The more interesting aspect is that if a group of people, some of whom are friends, uploaded their contacts, the network (Facebook, WhatsApp, Telegram) can build a graph of friends. And they can build a profile of you based on the profiles they have from your FB-using friends. Not sure how exact it'll be, but it's what they do and sell to their customers.