Logan Paul Faces Lawsuit Over Alleged CryptoZoo ‘Rug Pull’

Lavina Daryanani
Source: BBC

A new class action lawsuit has been filed against CryptoZoo and Logan Paul for allegedly stealing millions worth of cryptocurrency through a “fraudulent venture.” The plaintiff, Don Holland, contended that Paul and executives at CryptoZoo executed a ‘rug pull’.

The official filing detailed that the team allegedly promised NFT purchasers a host of benefits, including access to cryptocurrency assets. Other incentives included rewards and access to an online ecosystem to use and market CryptoZoo NFTs. However, the team ended up turning their back on the project and retained funds, the filing noted.

Also Read: Here’s How Logan Paul’s Crypto Dreams Crumbled

Attorney blames Paul and the team for siphoning off funds

Outlining their alleged next step, the filing revealed,

“In reality, soon after completing the sale of all their CZ NFTs, Defendants, together with others… transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants.”

The latest lawsuit was filed by attorneys from Ellzey & Associates and Attorney Tom and Associates. In mid-January, the attorney mentioned in a video that he was suing Paul over the alleged crypto scam after. He said,

“After weeks of investigation and speaking to a significant number of Crypto Zoo victims, we have taken legal action against Crytozoo Inc, Logan Paul…”

Additionally, he alleged them of fraud, express breach of contract, implied breach of contract, unjust enrichment, violation of Delaware’s prohibited trade practices, negligence, fraudulent misrepresentation, and conspiracy to commit fraud.

This is not the first time Paul has been accused. Earlier this year, YouTube journalist Coffeezilla accused the boxer of indulging in fraudulent activities with the NFT game.

While highlighting the scam behind the play-2-earn game, the journalist alleged that Logan Paul’s team did not spend $1 million in building the game. He blamed them for simply copying the code from FlokiShibX and claimed it as their own original game. Furthermore, he went on to assert that people were “buying” marketing and promises and lost millions in the process.

Acknowledging the latest development, Coffeezilla tweeted,

Also Read: Logan Paul Hired “Criminals” to Develop His CryptoZoo NFT Project