In a complaint filed with the US district court in Northern California in April 2020, blockchain firm Ripple Labs had alleged that victims were being defrauded out of millions of XRP valued at hundreds of thousands of dollars on YouTube. Ripple had blamed the video streaming giant for failing to disable cryptocurrency scam accounts. Scammers on YouTube impersonated Ripple CEO Garlinghouse to announce XRP give-aways in return for a small initial payment, a popular scheme used to defraud investors.
YouTube and Ripple reach a settlement.
In a complaint filed with the US district court in Northern California in April 2020, Ripple alleged victims had been defrauded out of millions of XRP valued at hundreds of thousands of dollars. The “irreparable harm” to its public image, brand, and reputation was a “direct consequence of YouTube’s deliberate and inexplicable failure to address a pervasive and injurious fraud occurring on its platform,” the complaint added. Ripple CEO Brad Garlinghouse revealed that both firms have reached a settlement in a series of tweets.
Settlement terms remain confidential.
Ripple CEO tweeted, “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,” Garlinghouse added. The CEO further mentioned that specific settlement terms are confidential, but it’s clear to all that without accountability and action, trust erodes in this industry, at a crucial time when governments around the world are looking closely at crypto”, he added. The US-based blockchain firm is facing a lawsuit from SEC over the illegal sale of XRP. In its recent response, Ripple has refuted the SEC’s allegation that the firm engaged in an illegal securities offering when they first issued XRP to investors.