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Logan Paul, CryptoZoo face lawsuit as investors take legal action

Logan Paul, CryptoZoo face lawsuit as investors take legal action

Don Holland sued CryptoZoo and Logan Paul, saying that Paul’s “fraudulent venture” was a “rug pull.”

A new class-action lawsuit names CryptoZoo and Logan Paul as defendants. The lawsuit says that they stole millions of dollars in cryptocurrency from people who bought it through a “fraudulent venture.”

Plaintiff Don Holland said in a court filing on February 2 in the District Court for the Western District of Texas that Paul and executives at CryptoZoo (CZ) “pulled a rug” by promising buyers of nonfungible tokens (NFTs) exclusive access to crypto assets and other benefits, but then leaving the project and keeping the money.

“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 complaint said.

“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 complaint stated.

Who sued John Paul?

The lawsuit was filed by lawyers from Ellzey & Associates and Attorney Tom and Associates. Attorney Tom, who is famous on YouTube, runs Attorney Tom and Associates.

Attorney Tom said in a YouTube video posted on January 16 that they are suing Paul over the supposed crypto scam after “weeks of investigating and talking to a number of Crypto Zoo victims.”

Attorney Tom says that Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov are also named as defendants in the suit (Ben Roth).

Even though Paul posted a video on Twitter on January 13 announcing a $1.5 million plan to help CryptoZoo investors get their money back, he is now being sued.

He also said that he won’t sue CoffeeZilla anymore for saying that his project is a scam. He said that suing him won’t “help Cryptozoo holders” and that he wants to focus on “people who like and support him.”

Paul explained his three-step plan to get back on his feet. In the first step, he and CryptoZoo co-founder Jeff Levin will burn their ZOO tokens.

He made it clear that by doing this, they will “have no financial upside” in the game and that it will “add value to the tokens of the holders.”

Paul says that in the second stage, he will put down $1,642 worth of Ether tickers so that “disappointed” investors can burn their NFTs and get back their initial investment of 0.1 ETH, which is how much it costs to mint an NFT.

In the third and last stage, he hopes to “deliver the game as described in the white paper.”

source: cointelegraph.com/

About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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