YEREVAN (CoinChapter.com) – Logan Paul, a former wrestler turned Youtuber and crypto influencer, was sued by disgruntled investors for an allegedly fraudulent NFT project CryptoZoo. The class action lawsuit alleges Paul and his associates “stole” millions of dollars of investors’ crypto.
Logan Paul Sued over CryptoZoo “rug pull”
In detail, Logan Paul has an extensive online following which includes 23 million subscribers on Youtube and 6.7 million followers on Twitter. The former wrestler advertised the NFT project on his outlets, promising a “fun and entertaining way” to earn money through P2E gaming.
However, an increasing number of ZOO token purchasers were faced with the fact that the project did not deliver on the promise. The game did not work, and the creators’ intentions came into question.
Defendants promoted CryptoZoo Inc.’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products. Unbeknownst to the customers, the game did not work or never existed,
read the class action motion.
and Defendants manipulated the digital currency market for Zoo Tokens to their advantage.
Plaintiff Don Holland also alleged that the project was indeed a “rug pull.” So, Logan Paul was sued for his role in CryptoZoo and the supposed “theft” of millions of investors’ crypto assets. The lawsuit against Logan Paul and the company was submitted by attorneys from Ellzey & Associates and Attorney Tom and Associates. The latter is the law firm run by YouTube personality Attorney Tom.
Also read: Logan Paul Apologizes to Coffeezilla — A Copycat of His Scam NFT Project CryptoZoo Launched
He also posted a video explaining the details of the case.
Notably, Attorney Tom was not the first to call Crypto Zoo a scam.
Is CryptoZoo a scam?
In Dec 2022, Stephen Findeisen, better known by his online alias Coffeezilla, conducted an investigation against Logan Paul. It made a splash online at the time. However, the project’s sales went up in early January, causing even more investors to expect returns.
According to the three-part video report, at some point in 2021, the project’s valuation reached $2 billion before the play-to-earn game even launched. Findeisen attributed the high level of trust towards the ‘unhatched’ NFTs to Logan Paul himself and how he marketed the project.
The investigation contained interviews with ‘victims’ of the CryptoZoo scam, who bought into the “fun game” idea. Findeisen’s team also dove deep into the project, including background investigations into key players, accusing Paul of not paying developers promptly, which led to a pause in “development activity.”
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Meanwhile, the question remains, will the investors see their money back? Logan Paul’s net worth at the moment of writing stood at $45 million. However, the allegations against his would take time and funds to clarify. Thus, CryptoZoo token holders will have to arm themselves with patience before they can see real returns.
