XRP issuer ends its lawsuits against Google and its YouTube platform. Ripple accused the streaming service of complicity in XRP token scams.
Ripple’s news on the legal front is getting lighter. The company recently won a case against one of its shareholders. Following the qualification of the XRP as a security, Tetragon demanded 175 million dollars from him.
The investor is unsuccessful, at least temporarily. He will have to wait for the resolution of the dispute between Ripple and the SEC. However, another procedure disappears from the office of the firm and its managers.
Scams, but advertising revenue for Google
In April 2020, Ripple sued YouTube. The reason for this legal offensive? Scams or scams on the Google streaming platform. Scammers were claiming to offer XRP for free.
Of course, these were scams. And according to Ripple, YouTube was not taking the necessary steps to stop these acts. Worse, the blockchain actor believed, Google itself was profiting from this fraudulent activity.
The two American companies have finally found common ground. On Twitter, Ripple CEO Brad Garlinghouse announces the end of hostilities. Has financial compensation been awarded? It is not mentioned and the terms of the agreement remain confidential.
“Last year @Ripple and I sued @YouTube for failing to enforce its own policies by allowing fake accounts (masquerading as my verified / Ripple accounts) to conduct XRP donation scams. We have now reached a resolution to work together to prevent, detect and dismantle these scams, ”writes the CEO.
Social networks more involved in the fight
These XRP scams relied on targeted phishing or spear-phishing attacks. The victim saw his YouTube account hacked and its content deleted. The hackers replaced it with a figure from the crypto world, including Brad Garlinghouse.
This identity theft made it easier for them to abuse other victims by promising them to receive free XRP tokens. How? ‘Or’ What ? By transferring 5,000 to 1 million XRP. But promised, investors would receive in return 5 times their initial investment.
Obviously, these were simple scams. The victims were losing their investment. And YouTube in this file? Its services allowed these scams. In addition, thanks to the advertising broadcast on these fraudulent videos, the platform was collecting advertising revenue.
According to Ripple, progress has since been made by Google to combat these videos. “Social platforms are starting to recognize the role they play in the persistence of cryptocurrency scams and recognize the need to be part of the solution,” said Brad Garlinghouse.