In a blog post, the company said it filed a lawsuit against YouTube to “prompt an industry wide-behavior change and set the expectation of accountability.”
Ripple and its CEO Brad Garlinghouse said scammers managed to defraud victims of “millions of XRP valued at hundreds of thousands of dollars”.
The company added that the online streaming platform earns from such scams although it has the ability to stop them. The filing states:
“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.”
The plaintiffs claim that the scams irreparably harmed both Ripple and its CEO. What made matters worse is that YouTube alleged “deliberate inaction”.
“YouTube’s deliberate inaction has irreparably harmed — and continues to irreparably harm — Ripple’s brand and Mr. Garlinghouse’s reputation. YouTube’s inaction has also injured countless individuals who fell victim to the Scam. These harms will continue to grow in scope and severity absent intervention by the Court.”
The plaintiffs call for any legislative, compensatory and punitive damages and return of any gains YouTube has received during the scam period.
Ripple: Rising XRP liquidity attracts strong institutions
Institutional traders are adding more liquidity to Ripple’s XRP-powered payment app, On-Demand Liquidity (ODL), said VP Breanne Madigan.
She added that XRP liquidity is ODL’s lifeblood as it decreases the risk and cost of each cross-border payment transaction.
By using the product, Mexico’s largest crypto exchange Bitso has expended its business, raising its XRP / peso volume significantly.
The company is currently handling 2.5 percent of remittance transactions from the US to Mexico, which is considered a breakthrough attributed to the company’s partnership with Ripple.