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TikTok's use of virtual currency to allegedly exploit children faces scrutiny in lawsuit
The District of Columbia attorney general alleges that TikTok operates an alleged "unlicensed virtual currency" as part of its TikTok LIVE feature.
A bipartisan group of 13 state attorneys general, as well as Schwalb, filed lawsuits against TikTok on Tuesday that claim the company misled users about the app's detrimental effects on the mental health and well-being of children and young adults. Schwalb's suit alleges that TikTok violated the district's money transmission laws by failing to get the licenses necessary to facilitate financial transactions through the company's livestreaming tool using its in-platform virtual currency. Social media companies like TikTok have been taking a cue from the video game industry in fostering big online marketplaces complete with digital currencies, said Gabriel Robins, a professor of computer science at the University of Virginia who has served as an expert witness in several tech-related patent lawsuits.
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