Ripple ends its legal case against YouTube for the social media platform’s alleged complicity within a spate of faux Ripple [XRP] giveaway scams, CEO Brad Garlinghouse revealed earlier on 9th March.
Ripple and Garlinghouse filed a lawsuit against YouTube LLC earlier in April last year, claiming that the platform itself had profited from the fraudulent activity, which it had did not exercise its administrative powers to prevent. Garlinghouse announced on Twitter recently on 9th March:
“Last year, @Ripple and I sued @YouTube for failing to enforce its own policies by permitting fake accounts (impersonating my/Ripple’s verified accounts) to conduct XRP giveaway scams. We’ve now come to a resolution to figure together to stop, detect and take down these scams.”
The scams relied on spear-phishing attacks, where a user’s account would be commandeered and its content erased. The account would then be found out to seem sort of a prominent cryptocurrency figure, like Garlinghouse himself. A fake XRP giveaway would then be launched, that solicited sums between 5k and 1,000,000 XRP from users on the promise that 5x times the first amount would be returned to them.
Ripple and Garlinghouse alleged that YouTube knowingly profited from such scams due to its tendency to still run advertisements on the fraudulent videos in question.
Garlinghouse suggested progress was being made, but that social media sites still had a responsibility to steer the clean-up of their own platforms. Garlinghouse added:
“Social platforms are beginning to acknowledge their role in permitting cryptocurrency scams to persist and recognize the necessity to be a part of the solution. Some like @xrpforensics are helping detect/track stolen funds, but platforms got to lead the charge or it’s still just whack-a-mole.”
Details regarding the character of the settlement between Ripple and YouTube remain confidential, explained Garlinghouse, who added that accountability was required at a time when national governments were examining the crypto ecosystem more closely.
Ripple remains under investigation by the United States SEC [Securities and Exchange Commission] for an alleged violation of the securities act. The SEC claims Ripple did not properly register XRP before facilitating $1.38 Bln worth of sales to investors.