- Logan Paul and CryptoZoo got sued by people who invested in their project.
- Complainants falsely promoted CZ NFTs to customers as part of their NFT scheme.
- Paul and CZ moved the money into different wallets.
Don Holland filed a complaint suing CryptoZoo and Logan Paul, stating that the YouTube influencer’s “deceitful business” performed a “rug pull.” CryptoZoo and Logan Paul have been listed as respondents in a new class-action complaint alleging that they plunder millions of dollars in cryptocurrencies from customers through a “fraudulent business.”
Defendant Don Holland claimed in a suit filed on Feb. 2 in the District Court for the Western District of Texas that Paul and the directors at CryptoZoo (CZ) performed a rug pull by convincing consumers of the non fungible tokens‘ unique connectivity to cryptocurrencies, among many other advantages, but then left the project and managed to keep the money.
We have officially filed a class action lawsuit in the Western District of Texas against Logan Paul et al. for the CryptoZoo fiasco. (This is in addition to the numerous cases heading to arbitration on the matter.) pic.twitter.com/BIC5v63TGZ— AttorneyTom (@attorney_tom) February 2, 2023
Plaintiffs advertised CZ NFTs to buyers as components of their NFT plan by fraudulently claiming that in return for switching virtual currency to buy the CZ NFT, buyers would later claim compensation such as bonuses, unique access to other cryptocurrency investments, and the assistance of an internet environment to utilize and do business with CZ NFTs.
In fact, shortly after selling all of their CZ NFTs, Respondents and others moved millions of dollars’ worth of customers’ cryptocurrencies to accounts controlled by Plaintiffs, among other locations.
Lawyers from Ellzey & Associates and Attorney Tom and Associates, a company owned by YouTube star Attorney Tom, filed the case. After weeks of investigation and interaction with numerous Crypto Zoo customers, Lawyer Tom announced in a YouTube video on Jan. 16 that they were charging Logan for alleged cryptocurrency fraud.
Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov are among the other defendants mentioned in the claim (Ben Roth). On January 13, Logan announced a $1.5 million restitution scheme for dissatisfied CryptoZoo owners in a video on Twitter.
Paul presented his three-step rescue plan, indicating that the initial step will involve him and CryptoZoo co-founder Jeff Levin destroying their ZOO coin assets. He stressed that by doing so, they would have no monetary benefit in the game, but it would increase the value of the owners’ coins.
The second step, according to Paul, would include him directly contributing 1,000 ether to the project so that “disappointed” donors may burn their NFTs to recoup their original investment of 0.1 ether, the cost of minting the NFT.
Meanwhile, he wants to “produce the game as specified in the white paper” in the third and final stage.