Apple Co-founder Steve Wozniak Wins Lawsuit Against YouTube for Bitcoin Scam Videos
Apple co-founder Steve Wozniak has emerged victorious in his lawsuit against social media giant YouTube over the unauthorized use of his image in videos promoting a Bitcoin scam. The San Jose appeals court overturned a previous judgment that cleared YouTube of any liability, ruling that the platform cannot rely on a controversial communications law to shield itself from accountability.
The Scam and Lawsuit
In 2020, Wozniak initiated a lawsuit against YouTube and its parent company, Google, alleging that they facilitated the proliferation of a scam targeting Bitcoin investors. The scheme involved the unauthorized use of Wozniak’s likeness to deceive individuals into sending cryptocurrency to online fraudsters under the pretense of participating in a live giveaway hosted by Wozniak, with promises of doubling the amount sent.
- Doctored videos circulating on YouTube featured Wozniak appearing to speak at tech conferences, accompanied by promises of free Bitcoin.
- Viewers were instructed to send cryptocurrency with the promise of doubling their investment, defrauding many unsuspecting users.
According to the lawsuit, victims of the scam transferred their cryptocurrency in irreversible transactions but received nothing in return. This type of fraudulent activity is not limited to Wozniak; other prominent figures such as Ethereum co-founder Vitalik Buterin and Tyler and Cameron Winklevoss have also been targeted in similar scams.
YouTube’s Liability
Wozniak and 17 other alleged victims filed a lawsuit against YouTube and Google, accusing them of knowingly hosting and promoting these fraudulent videos for profit. Despite Wozniak’s efforts to stop the unauthorized use of his likeness, YouTube remained unresponsive, causing irreparable harm to his reputation.
Initially, a Santa Clara County Superior Court judge ruled in favor of YouTube and Google, stating that they were protected from liability by Section 230 of the Communications Decency Act. However, the appeals court found that Google and YouTube may not be shielded under this law because they allegedly contributed to the scam by providing verification badges to hijacked channels.
- The court held Google and YouTube accountable for actively contributing to the Bitcoin scam that affected Wozniak by providing verification badges to hijacked channels.
- Instances were found where badges were issued to channels involved in the scam, despite Google’s claims that verification badges are only awarded to legitimate channels.
Implications of the Verdict
The court criticized YouTube and Google for their failure to remove these badges when the channels began promoting fraudulent content. The judges also highlighted the prevalence of such scams, with popular YouTube channels being compromised to broadcast fake videos featuring tech celebrities hosting live events.
Wozniak’s attorney, Joe Cotchett, emphasized the importance of holding social media platforms accountable for their actions and stated that they cannot use Section 230 as a blanket shield for their conduct. The ruling sends the case back to Santa Clara County Superior Court, allowing Wozniak and his co-plaintiffs to amend their lawsuit. They seek unspecified damages and an order for YouTube to warn users about the scam and prevent its continuation on the platform.
Hot Take: Protecting Users from Fraudulent Videos
The recent ruling against YouTube highlights the need for social media platforms to take responsibility for preventing fraudulent activities on their platforms. By allowing unauthorized videos promoting scams to circulate, these platforms put users at risk of falling victim to fraudsters.
As technology advances, bad actors find new ways to exploit it for their malicious purposes. It is crucial for platforms like YouTube to remain vigilant and promptly remove fraudulent content to protect their users and maintain the integrity of their platforms.
Source: Cryptonews
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