American media personality, professional wrestler, and actor Logan Paul is one of the defendants in a class action lawsuit filed against the failed non-fungible token (NFT) project CryptoZoo.
The class action lawsuit, brought by police officer Don Holland on behalf of 20,000 other victims, alleges that Paul and other defendants executed a stunt after manipulating the price of CryptoZoo’s native (ZOO) token.
Logan Paul sued for defrauding CryptoZoo investors
According to the document, the lawsuit was filed in the United States District Court for the Western District of Texas on Thursday. Other named defendants include Danielle Strobel, Jeffrey Levin, Jake Greenbaum aka Crypto King, Eduardo Ibanez and Ophir Bentov aka Ben Roth.
The complaint comes shortly after famed internet journalist Stephen Findeisen, known as Coffeezilla, claimed the CryptoZoo project was fraudulent in a three-part series on YouTube.
CryptoZoo was launched in 2021 as an NFT gaming project, with Paul as one of its founders. The project was promoted using Paul’s online platforms as a means of passive income. Investors committed over $2 million to CryptoZoo prior to its launch, and the value of the ZOO token skyrocketed.
More than a year later, no games have materialized and the project’s social media accounts have been dormant. Coffeezilla accused Paul of stealing millions from investors and then abandoning the project.
As previously reported, Paul accused Coffeezilla of spreading misinformation and threatened to sue him for defamation. However, in a surprising turn of events, Paul later He apologized and promised to fix things.
But victims of the failed project have taken legal action against the WWE star and his partners at CryptoZoo, accusing them of running a play and not following through on their promises.
“Defendants promoted CryptoZoo’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing such products. Unbeknownst to customers, the game either did not work or never existed, and Defendants manipulated the Zoo Tokens digital currency market to their advantage,” the file states.
A return request
The defendants were charged with eight counts, including fraud, unjust enrichment, and breach of contract.
The class action lawsuit seeks redress from them and the return of any profits made from the project.
“Because of these unconscionable practices, Defendants must repay any revenue, profit, or any other earnings from their scheme to Claimant,” the filing added.
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