Popular video-sharing social media platform, YouTube has moved a counter-motion to rule out the lawsuit filed against it by San Franciso-based crypto startup, Ripple.
Coinfomania reported Ripple’s lawsuit filed on April 21, arguing that YouTube had ignored several said fraudulent activities like giveaway scam videos on their platform, thus, destroying the company’s image and defrauding users of their money.
Ripple mentioned several specific examples, where scammers swapped the identity of channel founders for scam videos, thus portraying Ripple as placing the scam ads on YouTube.
Furthermore, hackers on YouTube gained access to Verification Badges, which YouTube has claimed to reserve for only official channels. Meanwhile, scammers who have the verification badges have taken advantage of the opportunity to enjoy privileges meant for legitimate channels.
But, YouTube, on July 21, responded to the charges by filing a counter-motion to overrule the allegations.
Among other things, YouTube tried to excuse itself from the allegations by citing Section 230 of the Communications Decency Act, which states that ‘no provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.’
YouTube lawyers also argued that the company “did not orchestrate or participate in that scam, and after being notified about fraudulent content posted by the hijacked accounts, YouTube removed it.”
But Fake Crypto Giveaway Ads on YouTube is Still On The Rise
Considering the sensitive nature of the case and the recent Twitter hack, YouTube’s attempt to counter the argument in court will likely not gain ground or at least be approved quickly. In past weeks, the video site has continued to grant scammers access to run paid ads on its platform and doing little or nothing to halt scammers from existing on YouTube.
It is glaring that scammers have extorted millions of dollars worth of cryptocurrencies from naive users, thereby depriving the crypto and blockchain industry of much-needed capital to spur growth and innovative progress.