The legal team of the video-sharing platform, Youtube, denies any responsibility for Ripple related scam because the content was made by third parties.
In response to Ripple’s recent lawsuit against YouTube, the online media platform denied any responsibility for the crypto scam, claiming that it was the work of a separate party that is not part of YouTube.
Earlier this year, an “XPR Giveaway” scam appeared on YouTube. Scammers were accessing content creators’ YouTube channels through harpoon attacks. The scammers then stripped the channels of all their content and posted videos posing as Ripple CEO Brad Garlinghouse.
The scam required users to send between 5,000 and 10,000 XPRs to a specified address, promising users a 500% return. Ripple still suspects YouTube of being complicit in the scam by giving the fraudsters the opportunity to run ads and profit from them.
“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.”
YouTube’s legal team denies any liability under Section 230 of the Decency in Communications Act, which states that the publisher cannot be held responsible for content published by third parties.
The defense team stated that Ripple did not accuse YouTube of soliciting, encouraging, or participating in the scam, and therefore is not liable.
A Continuing Scourge
Cryptoscams are a very familiar concept to seasoned investors, but they may seem like a lucrative opportunity to make money to new investors who are not yet informed.
Scams are usually carried out in a similar way by creating fake celebrity profiles or, in some cases, by hacking into social media accounts to promote “an extremely lucrative crypto investment”, which requires victims to transfer a certain amount of crypto.
Recently, an investigation by IB Group revealed a crypto fraud that claimed more than 250,000 victims in the US, UK and other countries.
Shortly thereafter, a scam emerged on Twitter, where 130 high-profile Twitter accounts were hacked to promote a Bitcoin scam. These included very wealthy entrepreneurs such as Bill Gates, Elon Musk and Jeff Bezos, in an effort to legitimize the scam.
Investors should be extremely cautious, as crypto scams can exist in the form of gifts, sextortion, fake exchanges and fake ICOs. A study by Whale Alert has shown that over $38 million worth of Bitcoin has been stolen by scammers over the past four years.