Logan Paul has been named in a class action law suit which claims that the popular YouTuber stole millions of dollars worth of cryptocurrency by running a “fraudulent scheme” in the form of his most recent NFT project CryptoZoo.
In a document filed to the District Court Western Texas, the plaintiff Don Holland alleged that Logan Paul and other key members of the CryptoZoo NFT project including Jeff Levin, Jake Greenbaum (Crypto King), Eddie Ibanez and others, executed a cardinal sin in the world of NFTs, most commonly referred to as a “rug pull”.
According to the filing, Paul and the team at CryptoZoo (referred to as ‘Defendants’ in the court filing) promised the buyers of the CryptoZoo NFT project exclusive access to a number of NFTs and related cryptocurrencies, but failed to deliver on these promises and kept the funds.
“As part of the NFT scheme, Defendants marketed CryptoZoo NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CryptoZoo NFT, purchasers would later receive benefits, including, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and market CryptoZoo NFTs,” reads the filing.
Instead of coming good on these promises, or choosing to return funds to investors after the NFT project suffered through a series of technical issues and allegations from other YouTubers like Coffeezilla, it appears though the team decided to keep the money for themselves.
“Soon after completing the sale of all their CryptoZoo NFTs, Defendants, together with others, transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants,” reads the filing.
It was also discovered that the NFTs in Paul’s project, which are essentially just terribly photoshopped images of different animals, were actually just a collection of stock images, having little in the way of value past what was paid for the commercial licence.
So how did Paul choose to face up to the growing list of accusations sent his way over the past few months? Well, first he tried to sue CoffeeZilla for making false claims, but later withdrew the claim after he realised he didn’t much in the way of a case.
After Paul was forced to retreat from the conflict with his tail between his legs, he did the one thing any reasonable man would choose to do. He channelled his inner Andrew Tate and blamed his many professional shortcoming on ‘the matrix’.
At current, no court date has been set for Paul and his similarly indicted colleagues.