Crypto YouTuber Logan Paul Faces Lawsuit Over Alleged Rug Pull

  • A case has been filed against CryptoZoo and Logan Paul for stealing crypto.
  • The plaintiff contended that Paul and executives at CryptoZoo executed a rug pull.
  • Previously, the YouTuber tweeted about a $1.5 million recovery plan for the victims.

Famous crypto Youtuber Logan Paul and CryptoZoo have been named as defendants in a newly filed class-action lawsuit, which alleges they stole millions of dollars worth of crypto via a fraudulent venture.

Plaintiff Don Holland filed the complaint against Paul and other executives at CryptoZoo (CZ) on February 2 in a US District Court, alleging that they executed a rug pull by promising buyers of the non fungible tokens (NFTs) exclusive access to crypto assets along with other benefits. However, they abandoned the project and kept the money.

The lawsuit read in part:

[They] marketed CZ NFTs by falsely claiming that purchasers would receive benefits, rewards, and exclusive access to other crypto assets. Soon after completing the sale, the Defendants transferred millions of dollars worth of purchasers’ crypto to wallets controlled by Defendants.

Attorneys from Ellzey & Associates and Attorney Tom submitted the lawsuit in the District Court of the Western District of Texas.

After weeks of investigation and speaking to many Crypto Zoo victims, Attorney Tom announced on a YouTube video posted on January 16 that they were suing Paul for the crypto scam. Attorney Tom also named Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth) defendants.

On January 13, Paul tweeted a $1.5 million recovery plan for CryptoZoo investors. In the Twitter video, he stated that suing CoffeeZilla would not help Cryptozoo holders and that he wanted to focus on his fans and supporters.

Paul’s three-step rehabilitation plan would begin with him and CryptoZoo co-founder Jeff Levin burning their ZOO tokens to “add value to the holders’ tokens.”

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