Steve Wozniak, the co-founder of Apple, has secured a favorable ruling in the ongoing legal battle with YouTube, allowing his lawsuit to continue.
This dispute revolves around a series of altered videos that exploited Wozniak's image to promote a Bitcoin (BTC) scam in 2020.
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These videos, also involving other high-profile individuals like Elon Musk and Bill Gates, promised viewers double returns on their Bitcoin investments, leading to widespread misinformation and financial losses.
Wozniak, alongside 17 other defrauded users, initiated legal action against YouTube and its parent company, Google, in response to the spread of these videos on the platform.
A San Jose appeals court recently overturned a previous ruling, challenging YouTube's claim of immunity under Section 230 of the Communications Decency Act, a legislation that protects online platforms from being blamed for content their users post.
The plaintiffs tried to argue YouTube's involvement in the scam by using an example of at least one instance where the scammers were awarded a "verification badge"—a blue checkmark—indicating the platform had verified the channel as credible.
Wozniak's attorney, Joe Cotchett, emphasized that Section 230 should not serve as an absolute defense and remarked:
This ruling underscores the necessity for social media giants like Google and YouTube to be accountable for their platforms.
The implications of this verdict extend beyond the immediate parties involved, potentially influencing how federal laws govern online media, suggesting a need for a reevaluation of the responsibilities of platforms in policing their content.
It is not the first time that YouTube and crypto scams have been used in the same sentence. Crypto sleuths ZachXBT and Coffeezilla have previously called out the platform's star KSI for using pump-and-dump schemes.