Controversial American internet personality Logan Paul has been named as a defendant in a lawsuit filed by police officer Don Holland in the Western District of Texas. The lawsuit, which has been filed on behalf of all similarly affected individuals, accuses Paul of involvement in a crypto scam through his company, CryptoZoo Inc.
The lawsuit alleges that Paul, along with five other defendants, promoted CryptoZoo Inc.'s products, including Zoo Tokens and CryptoZoo non-fungible tokens (CZ NFTs), through his online platforms, leading to the purchase of these digital currency products by tens of thousands of people.
CryptoZoo Inc., a Delaware corporation, was created to sell digital currency products in the form of Zoo Tokens, which were used to purchase other CryptoZoo products for use in the online game CryptoZoo.
card However, the lawsuit states that the game did not work or never existed and that the defendants manipulated the digital currency market for Zoo Tokens to their advantage.
According to the plaintiff, the defendants pulled off a "rug pull," a scheme in which the NFT developers solicit funds from prospective NFT purchasers with promises of certain benefits, but then abruptly abandoned the project and retained the funds while failing to deliver the promised benefits.
The lawsuit further claims that the defendants marketed the CZ NFTs by falsely claiming that purchasers would receive benefits, including rewards, exclusive access to other cryptocurrency assets and the support of an online ecosystem, in exchange for transferring cryptocurrency to purchase CZ NFTs. The defendants transferred millions of dollars worth of cryptocurrency to wallets controlled by them.
On Jan. 13, Paul released a video acknowledging CryptoZoo's failings and promising to burn his and his manager's Zoo Tokens and create a rewards program for disappointed Base Egg and Base Animal holders. However, the program does not include the defendants' profitable Zoo Tokens used to participate in the failed CryptoZoo or the third set of CZ NFTs, Hybrid Animals.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Arman Shirinyan
Godfrey Benjamin
Dan Burgin
Vladislav Sopov