Ripple is suing YouTube for failing to disable fraudulent accounts impersonating CEO Brad Garlinghouse and giving away XRP cryptocurrency.
In a complaint filed with the US District Court in Northern California, Ripple said the scam caused “irreparable damage” to its public image, brand and reputation as a “direct result of YouTube’s intentional and unjustifiable failure to address a widespread and malicious fraud on its platform.”
XRP Giveaway promotions included hacked YouTube accounts promising free XRP for a small initial payment. One example of the scam reportedly resulted in $15,000 of stolen XRP. Ripple claims that the victims were defrauded of millions of XRP valued at hundreds of thousands of dollars.
Ripple says it has filed 350 complaints about bad actors operating on YouTube. But she says YouTube has repeatedly ignored his complaints, even awarding verification badges to some of the compromised accounts.
Ripple is seeking to take a high seat in this measure, calling out social media companies for failing to monitor their sites and spreading fake news and deception.
today, @ripple I personally take legal action against @Youtube Because their platform is the epicenter of fraudulent scams, and they did almost nothing in response to the constant takedown requests. (2/4) https://t.co/EexfseYdDK
– Brad Garlinghouse (@bgarlinghouse) April 21, 2020