Logan Paul faces class-action lawsuit over failed CryptoZoo NFT project
The lawsuit alleges that Logan Paul and his associates executed a "rug pull" on the failed CryptoZoo project.
A class action lawsuit was filed against YouTube influencer Logan Paul and his associates over the failed crypto project CryptoZoo, according to a Feb. 2 court filing.
A Texas resident Don Holland filed the lawsuit and alleged that the defendants executed a “rug pull.” CryptoZoo was promoted via Paul’s online platforms, convincing thousands of people to purchase the product, according to Holland.
Paul’s associates included in the lawsuit were Danielle Strobel, Jeff Levin, Ebbie Ibanez, Jake Greenbaum, and Ophir Bentov.
The lawsuit alleges CryptoZoo never existed
Holland said he knew his money was likely lost after Logan Paul announced another NFT project and started ignoring CryptoZoo. He added, “CryptoZoo was never released as advertised, and the value of the Zoo Tokens and CryptoZoo NFTs plummeted.”
The filing stated that the defendants manipulated the digital currency market for Zoo Tokens to their advantage.
“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.”
The lawsuit seeks redress from Paul and his associates, who promoted and sold products that did not function as advertised. It further accused them of failing to support the CryptoZoo project and manipulating the digital currency.
“[The] Defendants defrauded Plaintiff and thousands of other consumers, and unjustly enriched themselves by profiting off Plaintiff and others without delivering on their promises.”
The filing accused Paul and associates of being negligent, engaging in unjust enrichment, and fraudulent representation. They were also charged with conspiring to commit fraud and violating Texas’ Deceptive Trade Practices Act.
The CryptoZoo NFTs gained wide notoriety following Coffeezilla’s investigations into the project. Logan Paul later revealed a refund plan for disgruntled investors in the NFTs.