Ripple Taking Legal Action Against YouTube for Aiding & Profiting from XRP-Giveaway Scams
US-based fintech startup Ripple is taking legal action against YouTube “to prompt an industry wide-behavior change and set the expectation of accountability.” As per the company's announcement on Tuesday, Ripple is taking a step
“to protect customers around the world from dangerous online giveaway scams and false impersonations across YouTube, Twitter, and Facebook.”
Plaintiff Ripple and its CEO Brad Garlinghouse allege that both are suffering “irreparable” harm to their public image, brand, and reputation because of the Google subsidiary’s “deliberate and inexplicable failure to address a pervasive and injurious fraud occurring on its platform.”
Enough is enough — in a time of global crisis, when people are especially vulnerable — social platforms need to hold scammers (crypto and otherwise) accountable for stealing money from innocent victims with fake giveaways. (1/2) https://t.co/wxrF4J3JWu
— Brad Garlinghouse (@bgarlinghouse) March 25, 2020
Scams like “the XRP1 Giveaway” is a third party attack on XRP holders that are thriving because of YouTube’s “complacency and unwillingness to take seriously Ripple’s repeated demands for action.”
They further elaborated that these scams have been going on for a long time and being replicated many times and in one such instance resulting in the theft of $15,000 worth of XRP.
As per the 22-page long complaint, the scam is misappropriating the company and Garlinghouse’s image further leading to “profound uncertainty and confusion into the broader digital asset market.”
Despite repeatedly demanding that YouTube take action, the online video sharing platform has reacted inadequately but they “must do better” with the company touting its robust tools for self-regulating content.
“YouTube’s inaction undermines its public commitments,” reads the document adding that with its community Guidelines barring precisely the sort of content at issue in this case, they have ignored Ripple’s repeated demands for action.
In doing so, they aren’t only validating the scam as legitimate but profiting from them by aiding and abetting the scammers.
The company is now asking for restraining Defendant YouTube from refusing to apply its content regulation, ignoring and delaying its response to takedown notices, profiting from scams, verifying accounts perpetuating the scam, and awarding fraudulent channels verification badges.
Ripple and Garlinghouse are also seeking damages, reasonable costs including attorneys’ fees, pre- and post-judgment interest, and recovery in restitution equal to any unjust enrichment enjoyed by the Defendant.
Ripple has also hired external cybersecurity and digital threat intelligence vendor to help them with reporting and takedown of these giveaway scams.
Our Team here at BitcoinExchangeGuide have tried to do our part in warning investors, traders, and onlookers to be wary of these types of scams. Here are just a few of the posts we covered on the subject:
- Ripple Scams Plaguing the XRP Community and Crypto Industry: Fake Giveaways
- Cyber Criminals Turn to Fake Ripple Livestream Videos and XRP Giveaways
- Ripple CEO Comments on Libra and XRP MoneyGram Partnership (+ Beware XRP Giveaway Scams)
- Ripple Wallet GateHub Warns Users About Phishing Scam, 4.5 Million Stolen XRP On The Move
- XRP Twitter Troll Bots Attempt To Scam Ripple Investors By Claiming Abandoned Development Team
- New Ripple Cryptocurrency Scam Surfaces Under the Name “XRP Classic” to Confuse Investors
- Ripple XRP Coin Phishing Scam Shut Down By FBI And South Korea Police
- Ripple Future Scams 1,800 Investors Involved in INR 30 Crore Scheme
And you can bet there are many more that are being reported every day and plenty that are still duping investors that don't take proper precautions.