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Ripple Labs and CEO Brad Garlinghouse are suing YouTube over allegations that the video streaming giant failed to guard its platform against fake XRP scams, resulting in monetary damage to users and damage to Ripple’s reputation.
Ripple’s lawsuit centers on “XRP Giveaway” scams that rely on hijacked accounts and other means to trick victims into believing that if they send a certain amount of XRP they will receive a larger amount in return, the deposit claims. Similar scams with other cryptocurrencies have long existed on Twitter and other platforms.
In a series of tweets, Garlinghouse said YouTube is the “epicenter” of these scams, although he said other platforms like Instagram are also responsible.
“Across the industry, social media companies have failed to check that their platforms were not abused due to completely preventable impostor giveaway scams. Hundreds of people (including some of you) were injured, but great technology continues to drag its feet, “he said.
According to the lawsuit, Ripple claims that the scammers successfully defrauded “millions of XRPs worth hundreds of thousands of dollars” from victims. He cited at least one case where a scammer apparently received $ 15,000 in XRP from a victim.
“Ripple has repeatedly asked YouTube to take action to stop the scam and prevent further damage. Yet YouTube refuses, even as the same pattern is replicated over and over on its platform. YouTube’s response was woefully inadequate and incomplete. As a result. , Ripple and Mr. Garlinghouse continue to suffer substantial reputational damage, “the lawsuit said.
Ripple has sent out at least 25 takedown notices against accounts promoting such giveaways, but YouTube hasn’t acted promptly, the lawsuit claims.
Among the allegations, Ripple claims that Google’s subsidiary assists scammers in spreading ads and profits from this revenue: “YouTube, after being informed about the scam on countless occasions, sold and helped scammers to spread advertisements, so-called “video discovery ads” —to get more YouTube visitors to view and click on videos that perpetuate the scam. “
The lawsuit asks a federal court to force YouTube to close any alleged scams using Ripple’s trademarks to promote such giveaways, to be more proactive in closing future alleged scams, to stop the verification of such alleged scams, and for damages, returns , costs and interest.
“The Court should oblige YouTube to comply with its legal obligations, to discontinue its policy of willful inaction and to prevent further irreparable damage to Ripple’s brand and Mr. Garlinghouse’s reputation, which, in turn, will prevent further financial damage to the company. people who are duped by the scam. In the absence of a court order obliging YouTube to act, the scam will undoubtedly continue to thrive and create countless more victims, “the lawsuit said.
Ripple did not immediately respond to a request for comment. A YouTube spokesperson told CoinDesk “We take abuse of our platform seriously and act quickly when we detect violations of our policies, such as scams or identity theft” in an emailed statement.
Read the full dress below:
UPDATE (21 April 2020, 23:11 UTC): This article was updated with a comment from YouTube.
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