The so-called Spam King surrendered to FBI agents in California.
According to his prosecutors, Mr Wallace developed a program that breached Facebook spam filters to lure users to submit their account details.
Mr Wallace denies the charges and has been released on $100,000 (£61,000) bail. If the Las Vegas resident is found guilty, he faces up to a decade in prison.
Between November 2008 and March 2009, around 500,000 Facebook accounts were compromised, leading to more than 27 million spam messages being sent.
Meanwhile, Tim Gibbon, founder and director of Elemental Communications, claimed recently that rival social networking site Twitter is likely to become even more popular over the next few years.
Mr Gibbon noted that the popular networking site is still growing and that it "doesn't appear to have reached critical mass".
