- Brad Garlinghouse has filed a lawsuit against YouTube for it’s alleged complicity in a spate of repeated XRP giveaway scams.
- The lawsuit was filed earlier this week in the northern district of California.
The CEO of Ripple Labs, Brad Garlinghouse has filed a lawsuit against YouTube for it’s alleged complicity in a spate of repeated XRP giveaway scams.
The lawsuit was filed earlier this week on the 21st of April in the northern district of California. The case is looking to seek damages for YouTube's failure to stop the XRP impersonators and scammers.
The plaintiffs are taking action against the video platform to encourage an industry-wide behaviour change and set the expectation of accountability.
According to the blog post published by the company, the CEO and the body have said that the scams are often referred to as an XRP giveaway and have seen multiple people fall victim with XRP valued at hundreds of thousands of dollars being lost.
The XRP scam in question relies on spear-phishing attacks against legitimate channels on YouTube. By using malicious emails, the attackers are able to take control of the creators' channel.
The videos taken over by scammers, then encourage viewers to send up to 1,000,000 XRP tokens to a listed address. In return, they promised five times what they have in profit.
The lawsuit makes it clear that YouTube knowingly profits from the actions of scammers even though they have the ability to stop them in their tracks. E filing further states:
“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.”