Ripple Labs and CEO Brad Garlinghouse are suing YouTube for allegations that the video streaming giant failed to control its platform against fake XRP gift scams, which resulted in a financial loss for users and damage to Ripple's reputation.
The Youtube scam for fake XRP gifts
Ripple's trial centers on “XRP Giveaway” scams that rely on hijacked accounts and other fraudulent means to trick victims into believing that if they send a certain amount of XRP, they will receive a larger amount in return, according to filing a complaint. Similar scams with others cryptocurrencies have been around for a long time on Twitter and other platforms.
In a series of tweets, Brad Garlinghouse said YouTube was the “epicenter” of these scams, but said other platforms like Instagram were also responsible: ” Across the industry, social media companies have failed to prevent their platforms from being misused by impostors, whose advertising gift scam is completely preventable. Hundreds of people (including some of you) have been injured, yet big tech continues to drag their feet” , did he declare.
Ripple and Brad Garlinghouse at war against scams
According to the lawsuit, Ripple claims that the scammers managed to defraud “millions of XRPs worth hundreds of thousands of dollars” to the victims. He cited at least one case where a con artist would have received $ 15,000 in XRP of a victim. ” Ripple has repeatedly requested that YouTube take steps to end the scam and prevent further harm. However, YouTube refuses, even when the same scheme is repeated repeatedly on its platform. YouTube's response has been woefully inadequate and incomplete. As a result, Ripple and Mr. Garlinghouse continue to suffer significant reputation damage“Said the lawyer for the Ripple group.
Ripple sent at least 25 account withdrawal notices promoting such gifts, but YouTube did not act quickly, according to the complaint. Among the allegations, Ripple claims that the Google affiliate helps the scammers to run ads, and takes advantage of these revenues: ” YouTube, after being told countless times of the scam, has sold and helped the scammers to run advertisements – known as “video discovery ads” ” – so that more YouTube visitors can see and click on the videos perpetuating the scam“.
Ripple / YouTube trial under stress
The trial calls on a federal court to force YouTube to end all alleged scams that use the Ripple trademarks to promote such gifts, to be more proactive in ending future suspected scams, to stop checking for these suspected scams, and to pay damages, refunds, costs and interest.
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” The Court should force YouTube to fulfill its legal obligations, end its policy of deliberate inaction and prevent further irreparable harm to the Ripple brand and Mr. Garlinghouse's reputation, which in turn will prevent all further financial loss for people who are duped by the scam. In the absence of a court order forcing YouTube to act, the scam will no doubt continue to thrive and countless other victims“Said Ripple’s lawyer.
Ripple did not immediately respond to a request for comment. A YouTube spokesperson told CoinDesk: ” We take the abuse of our platform seriously, and act quickly when we detect violations of our policies, such as scams or identity theft. In a statement sent by email.
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