Ripple is suing YouTube for enabling cryptocurrency spreading & # 039; Giveaway & # 039; Amounted to


Representation of the virtual ripple currency. (Reuters)

Representation of the virtual ripple currency. (Reuters)

According to Ripple, YouTube has enabled hackers to make victims send money using fake social media profiles.

  • Reuters
  • Last update: April 22, 2020, 12:59 p.m.

Blockchain company Ripple sued Alphabet Inc.’s YouTube on Tuesday, claiming that the video sharing platform did not protect consumers from cryptocurrency fraud that uses fake social media profiles to send victims to money to tempt. According to the company, fraudsters have used YouTube as Ripple and its CEO Brad Garlinghouse to get viewers to send thousands of dollars worth of XRP, a cryptocurrency championed by Ripple.

The fraudsters promise to return up to 5 million XRP worth nearly $ 1 million, but victims who participate in the fake “giveaways” will never receive money for it, the file says. The lawsuit appears to be poised to raise a new challenge regarding controversial Section 230 of the Communications Decency Act, which protects Google, Facebook, and other Internet companies from liability for material that users post on their platforms.

Washington regulators are rethinking the need for full immunity from the law, which has contributed to the growth of U.S. technology companies, but is increasingly seen as protection that enables some of the richest companies in the world to invest to curb crime, extremism and misinformation to avoid on the Internet. “For every scam, giveaway, fake conspiracy that gets rid of, several more appear almost immediately,” said Ripple in a blog post. “YouTube and other major technology and social media platforms must be held responsible for not implementing enough processes to combat these scams.”

Garlinghouse, a longtime Silicon Valley manager, said he wanted the case to be a “call to action” for the social media industry, arguing that the law was written “at a time when we didn’t understand have misused how these platforms could be. “He said he saw similar imitations on platforms like Facebook’s photo sharing app, Instagram, but targeted YouTube in the lawsuit because it was” slowest to respond and least proactive. ”

YouTube spokesman Alex Joseph said the company takes the abuse of the platform seriously and acts “quickly if we discover violations of our policies, such as fraud or impersonation.” Ripple was founded in 2012 and is one of the best known companies that develops the so-called blockchain technology or the system on which cryptocurrencies are based. The company develops blockchain systems that enable financial service providers to make cross-border payments with XRP. According to his filing with the US District Court for the Northern District of California, YouTube’s failure to tackle the “ubiquitous and harmful fraud” has damaged Ripple and Garlinghouse’s reputation.

According to Ripple, millions of people watched the scams on YouTube, which allowed the scam to multiply by ignoring video removal requests and continuing to sell ads to the scammers. YouTube also issued a “verification badge” to a hacked channel that shows a photo of Garlinghouse as a profile picture that incorrectly indicates to viewers that the account is legitimate.