The American media personality Logan Paul is in deep trouble, charged with eight counts in a new class action lawsuit.
Logan Paul’s CryptoZoo project caught the eyes of the community, mainly after the YouTuber CoffeeZilla exposed him with a series of videos. The American influencer launched a non-fungible token-based (NFT) based game, CryptoZoo, last year. The timeline for the game that was supposed to work on a play-to-earn basis was around Sept. 2021.
Logan Paul raised $2.5 million with the CryptoZoo (CZ) NFT sale, but the game is nowhere to be found. He also launched a cryptocurrency called the ZOO token, which has lost almost its entire value. The YouTuber and Attorney Tom filed a class action lawsuit against Logan Paul in the US District Court for the Western District of Texas.
Logan Paul Charged With Eight Counts
Attorney Tom filed the class action lawsuit on behalf of a police officer, Don Holland, and other individuals with similar situations. The lawsuit seeks damages for committing rug pull and manipulating the ZOO token’s price.
Logan Paul faces allegations for the following counts:
- Fraud
- Express Breach of Contract
- Implied Breach of Contract
- Unjust Enrichment
- Violation of Texas’s Deceptive Trade Practices Act (DTPA)
- Negligence
- Fraudulent Misrepresentation
- Conspiracy to Commit Fraud
The affected investors are willing to participate in the lawsuit to benefit from the reimbursement. In contrast, some believe that lawyers fighting the case will eat up every last cent.
The $1.3 Million Revival Plan
Last month, Logan Paul announced a three-step revival plan with a $1.3 million rewards program. In the first step, Paul declared he’d burn his ZOO tokens to add value to the token.
In the second step, he committed 1,000 ETH (approx. $1.3 million) to reward the players who wish to get out of the ecosystem by burning their NFTs. The investors will be rewarded in crypto, and hence they will have to face the loss of declining ETH price from 2021.
For the final step, he promised to finish the project and deliver the game. This plan received both appreciation and criticism from the community.
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Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/new-class-action-logan-paul-fraud-accuses-him-rug-pull/