Charles Hoskinson, CEO of IOHK company behind Cardano, has threatened a class action lawsuit against YouTube and Twitter over cryptocurrency fraud on platforms.
Blue Checkmark and Scams in the Cryptocurrency Space https://t.co/3HxqsuVi6B
– Charles Hoskinson (@IOHK_Charles) March 16, 2021
Hoskinson accused social media of inaction during fake Bitcoin giveaways on behalf of celebrities. He has pledged to investigate whether platforms can profit from ongoing fraud cases.
According to the head of IOHK, the victims have repeatedly applied to the company or to him personally with requests to compensate for the damage. Hoskinson said he received threatening photographs of his pets, home and parents.
“Perhaps my decision will be to simply leave all social networks to begin with. And then we will be able to broadcast through our official accounts that [other] profiles on Facebook, Instagram, Twitter, YouTube are just fake, ”Hoskinson said.
In July 2020, Apple co-founder Steve Wozniak joined a class action lawsuit against YouTube . According to the document, users lost millions of dollars due to fake giveaways.
The plaintiffs demanded that the videotapes be removed and that they be compensated for the damage caused. They accused YouTube of being inactive for months and even promoting fraudulent content.
The attackers also acted on behalf of Bill Gates, Elon Musk and Michael Dell. The lawsuit is supported by screenshots from live broadcasts, during which users were urged to send bitcoins in exchange for double the amount.
Ripple has previously filed a similar lawsuit against YouTube. The reason was the fraudulent distribution of the XRP token, in which the CEO of the company Brad Garlinghouse often appeared. According to a study by Xrplorer, organizers have stolen 1.543 million XRP (~ $ 726,000 at the exchange rate at the time of writing).
In response, the video hosting lawyers said that YouTube is not responsible for the materials posted by third parties.
In August, a fake Bitcoin giveaway appeared on YouTube from popular tech blogger John Prosser. In November, scammers promoted crypto on Twitter on behalf of Musk under Trump’s post.
We will remind, analysts of Chainalysis reported that in 2020 the share of transactions related to crime in cryptocurrencies decreased to $ 10 billion .