YouTube Rejects Fault for Blockchain Scam, Moves to Dismiss Suit

YouTube said it’s not at fault for blockchain scammers using its platform, in moving Tuesday to dismiss a lawsuit by Ripple Labs Inc.

Section 230 of the Communications Decency Act “categorically bars” such suits, the Alphabet Inc.’s Google unit said in a motion in the U.S. District Court for the Northern District of California.

The motion shows how video-sharing platforms rely on a section of the 1996 law stating that computer services shouldn’t be treated as the publisher or speaker of other providers’ content.

A representative for Ripple didn’t immediately respond to a request for comment. A YouTube spokesperson said, “We take abuse of our platform seriously and take action quickly when we detect violations.”

Ripple sued YouTube in April, alleging it failed to stop bad actors from using the video-sharing platform to stage fraudulent “giveaways” that encouraged viewers to send XRP, the blockchain company’s digital currency.

Ripple alleges the scam took hundreds of thousands of dollars from victims, and harmed Ripple’s brand and the image of CEO Bradley Garlinghouse.

YouTube in its motion said there’s “no plausible allegation” the video-sharing platform used Garlinghouse’s identity. Also, it is not enough to allege that YouTube merely contributed to the misappropriation, the company said.