Ripple settles lawsuit with YouTube for ‘failing to enforce its own policies’
Ripple is in the news today after CEO Brad Garlinghouse revealed that its lawsuit against YouTube has been resolved, with the exec adding that the two parties have reached a settlement on the subject.
Last year, @Ripple and I sued @YouTube for failing to enforce its own policies by allowing fake accounts (impersonating my/Ripple’s verified accounts) to conduct XRP giveaway scams. We’ve now come to a resolution to work together to prevent, detect and take down these scams. 1/3
— Brad Garlinghouse (@bgarlinghouse) March 9, 2021
The aforementioned lawsuit was filed by Ripple and Garlinghouse last year after a number of fake accounts impersonated the CEO on the video-streaming platform to defraud individuals and promote fake XRP giveaways. According to the exec, the lawsuit was filed against YouTube for “failing to enforce its own policies” by allowing these scams to take place.
Following news of the resolution, he tweeted,
“We’ve now come to a resolution to work together to prevent, detect and take down these scams.”
Reportedly, the proceeds from the settlement with YouTube will go to a non-profit organization that helps victims affected by cybercrime.
In fact, in a recent interview, Garlinghouse claimed that he received violent threats from those who had been taken advantage of by a crypto-scam, many of whom believe that he was directly involved as a result of the social media impersonators.
“I’ve been in Silicon Valley for 24 years. All of the major tech platforms need to take ownership of not only the good they’re doing, but how they are being abused.”
On Twitter, however, Garlinghouse admitted that social media platforms are starting to acknowledge their role in allowing crypto-scams to persist and are recognizing the need to be part of the solution.
Ripple is in the middle of an ongoing lawsuit with the U.S Securities and Exchange Commission, the verdict of which will officially determine whether XRP is a security or not.
While Ripple’s legal counsel has asserted that the case is merely “regulatory overreach” on behalf of the SEC, the regulator has alleged that Ripple executives Garlinghouse and Larsen “knew or recklessly disregarded that XRP investors had a reasonable expectation of profiting from Ripple’s efforts with respect to XRP.”
The most recent development as a result of Ripple’s ongoing SEC situation is the end of Ripple’s longstanding relationship with MoneyGram. The company announced yesterday that the partnership had come to an end due to regulatory uncertainties. XRP’s price remained relatively stable amidst the uncertainty, however, and was trading $0.4704, at press time.