Apple co-founder Steve Wozniak has emerged victorious in a legal battle against YouTube regarding doctored videos featuring him in a Bitcoin scam. The latest appeals court ruling overturned a previous judgment that had cleared YouTube of any liability. This decision allows Wozniak to pursue his lawsuit against the platform, challenging the protection granted by federal law to video streaming platforms like YouTube.
A San Jose appeals court determined that YouTube cannot utilize a communications statute to evade responsibility for a fraudulent scheme that exploited Wozniak’s image to deceive individuals. The lawsuit stems from manipulated videos spreading a fake Bitcoin giveaway, which prompted Wozniak and several others to sue YouTube and its parent company, Google, in 2020. These doctored videos purported to offer free Bitcoin and urged viewers to send cryptocurrency to a specified address.
The recent ruling marks a significant victory for Wozniak and his co-plaintiffs, as it challenges the immunity granted to online platforms under Section 230 of the Communications Decency Act. The court highlighted YouTube’s role in promoting scams by allowing hijacked channels to retain verification badges, thereby contributing materially to the fraudulent activities. Wozniak’s attorney emphasized the importance of holding social media giants accountable for their actions, asserting that Section 230 should not shield them entirely from liability.
