YouTuber Logan Paul has been named in a lawsuit against his project CryptoZoo, which has been accused of fraudulently stealing millions from investors.
Logan Paul Faces Class-Action Lawsuit
A class-action lawsuit has been filed against Logan Paul and his CryptoZoo project by the plaintiff named Don Holland, who alleged that the project had executed a ‘rug pull’ by abandoning the CryptoZoo NFT project. According to Holland, the project pulled in investors by promising exclusive access to crypto assets and other benefits and abandoned the project without returning the customer funds. The filing also alleged that the defendants transferred millions of dollars worth of investor funds to their own wallets.
The court documents filed by the plaintiff read,
“As part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CZ 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 CZ NFTs.”
Major Players In The Lawsuit
The lawsuit also names other defendants, which include Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth). For the legal battle, Holland has hired attorneys from Ellzey & Associates and Attorney Tom and Associates for the legal battle. Attorney Tom is a YouTube personality who recently released a video on his channel stating that they are slapping Paul with a class-action lawsuit over the fraudulent venture after speaking to other victims of the alleged scam.
CoffeeZilla Vs. Logan Paul
The questionable nature of the project first came into the spotlight when internet detective Stephen “Coffeezilla” Findeisen released a three-part documentary, labeling the CryptoZoo project as a scam. Soon after, Paul released his own video, threatening to sue Coffeezilla. However, he soon followed it up by deleting the post and promising not to follow through with the defamation lawsuit, claiming that it would not benefit the investors.
Logan Paul’s Recovery Plan
The recent class-action lawsuit against Paul has been filed despite him detailing a three-step recovery plan to save the project. He has stated that in the first stage, he and CryptoZoo co-founder Jeff Levin will be burning their personal ZOO token holdings in order to add value to the holders’ tokens. Secondly, Paul will be personally committing 1000 ETH to the project to allow investors to get back their initial investment of 0.1 ETH, which was the cost of minting their NFTs. Finally, he has claimed that he will be working on delivering the game that was outlined and promised in the whitepaper.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/02/logan-pauls-cryptozoo-sued-over-rug-pull