Crypto Firm Ripple Sued YouTube Over Failure to Stop XRP Scam Videos
April 21, 2020 12:13 am
Brad Garlinghouse- the CEO of Ripple, a finance and cryptocurrency firm based in San Francisco, sued Youtube for its alleged conspiracy in a stream of repeated “XRP giveaway” scams.
On Tuesday, April 21, Ripple Labs filed this case in the Northern District of California, seeks damages for Youtube’s failure to stop XRP (XRP) scammers and impersonators.
The Plaintiffs, representing Garlinghouse and Ripple is taking action against Youtube of damaging their brand and reputations and demanded an unspecified amount of financial compensation and also demanded to stop YouTube from benefiting from the scam or from enabling them to continue.
According to an official blog post by Ripple and Garlinghouse announce: “Today, we are taking legal action against YouTube to prompt an industry wide-behaviour change and set the expectation of accountability.”
The alleged scams are similar to the many other cases noticed on other social media platforms, and typically use the image of famous executives, including Bill Gates and Richard Branson, to offer “giveaways.” In most instances, the scammers ask to send a small amount to receive a higher return and run away with whatever funds they receive.
The complaint mentions various instances where hackers exerted over the channels of legitimate creators and replaced their videos with ones advertising Ripple-related scams. The Ripple scam videos usually showed media interviews with Garlinghouse lifted from trustworthy sources, and covered with invitations to participate in “giveaways” of the cryptocurrency XRP.
The lawsuit lodges accusations for Violations of the Lanham Act for Trademark Infringement, Violations of California’s Statutory and Common Law Right of Publicity and Violations of California’s Unfair Competition Law.
YouTube’s Deliberate Inaction
The claim pronounces that Youtube intentionally benefits from the actions of the scammers, despite having the ability to obstruct them. The filing statement:
“YouTube profits from the Scam by knowingly selling paid ads on behalf of the fraudsters who are impersonating Ripple and Mr Garlinghouse. These ads — so-called ‘video discovery ads’ — are designed by YouTube to appear at the top of its search result page alongside organic search results.”
Ripple recounts various instances where Youtube granted affirmations to channels which had been taken over by the scammers. Since November 2019, Ripple has filed 49 takedown demands to Youtube related to the scam. Per the document, 305 accusations were filed against channels impersonating Brad Garlinghouse specifically.
The Plaintiffs claims that irreversible harm has already been done to the reputation of both Ripple and Brad Garlinghouse, got worse by Youtube’s alleged “deliberate inaction,” according to the lawsuit.
“YouTube’s deliberate inaction has irreparably harmed — and continues to irreparably harm — Ripple’s brand and Mr Garlinghouse’s reputation. YouTube’s inaction has also injured countless individuals who fell victim to the Scam. These harms will continue to grow in scope and severity absent intervention by the Court.”
The lawsuit requests for the award of any lawful, compensatory and disciplinary damages and return of any beneficiation Youtube has received across the period the scams were active.