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YouTube Not Liable for Crypto Scams: News Report

YouTube, video streaming online platform not taking liability for Ripple crypto scam because the impersonators were third parties.

Reportedly, YouTube mentioned in a notice to the California federal judge against Ripple’s lawsuit and rejected the defense.

YouTube claims that the platform is protected from liability by federal internet laws and comes under section 230 of the Communications Decency Act of 1996. According to the rule, YouTube has immunity from the state law right under United States internet legislation.

The statute says

“No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another third party information/content provider.”

Ripple blog post on April 21 displays that lawyers of the San Francisco-based cryptocurrency firm Ripple and Brad Garlinghouse filed the lawsuit against YouTube LLC in the Northern District of California on unfair business practice claims, alleging video-sharing platform failed to protect consumers from cryptocurrency “giveaway” scammers who impersonated blockchain startup Ripple Labs Inc. and CEO Brad Garlinghouse.

The scammers made the fake profiles of the company along with the CEO and lure the victims by spreading sham “XRP giveaway” and solicited over $1,50,000 from the YouTube audience.

According to the latest updates, the plaintiffs are still holding sites like YouTube liable for not taking strict measures and not acting aggressively to monitor, block, and remove the material, and the scammers from the social platforms.

While YouTube’s legal squads contending against Ripple’s lawsuit saying- this is an “unwitting verification” of scam channels and it doesn’t change the fact that scam content was created and published by the third parties and not by YouTube and Law 360 applied the current case as well.

Further, the legal team says that YouTube has no liability to the scam as Ripple hasn’t accused the video-sharing platform against any participation, solicitation, or encouragement in the third-party fraudsters’ scam event.

Twitter Hack After Ripple’s Lawsuit on Identity Scam

Ripple isn’t the only one entrapped by the hackers and scammers in the cryptocurrency industry. Earlier on July 15, a coordinated hack took place on the social media platform Twitter, that was able to breach the accounts of celebrities and high-ranking political personalities including cryptocurrency veterans.

On the incidence, cybersecurity experts urge that social media platforms must take full security-related measures to tackle such nefarious happenings to transpire further.

Whereas other mushrooming crypto-focused firms such as Paxful- peer-to-peer (P2P) Bitcoin trading platform took an immediate step while considering the safety of its users and block the wallet addresses used by the hackers for moving the funds.

Ray Youssef, CEO of Paxful told KoinPost on showing concerns over increasing BTC and crypto scams.

“Our team responded quickly to the incident by blocking the wallet addresses used. With this, we only had 5 customers send out BTC before we implemented the blocking control. Speculation and the grey markets are the traction point for all emerging tech, and this incident shows how we are not yet out of that realm. We still have a lot of educating to do and we want to prove the real use cases of P2P and bitcoin which are e-commerce, payments, remittance, wealth preservation, and social good.”

Cryptocurrency Industry & Social Media Must Take Actions

Increasing hacks in the cryptocurrency industry are not good for its intending growth. Financial literacy also plays an important role to guide naïve and smart crypto-traders and hodlers.

As crypto industry gets mature, the new technologies are being employed by the fraudsters and impersonators. To tackle the alarming siphoning activities cryptocurrency exchanges and social media platforms must act in tandem and figure out stern solutions to avoid further damage.

“Twitter obviously needs to re-evaluate its security processes, which the company will invariably do. Attacks such as this could have serious and far-reaching consequences – from stock market manipulation to election interference – and Twitter must put in place the controls to prevent future compromises.” 

 Brett Callow, threat Analyst from Emsisoft told KoinPost.