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Following the CryptoZoo lawsuit, new evidence reported by the BBC alleges that American YouTuber Logan Paul misled his followers by promoting meme coins on his social media accounts and subsequently selling them.
A report published by BBC on November 20 delves into Logan Paul's cryptocurrency efforts, stating that the team found “new evidence suggesting that he promoted investments without disclosing that he had a financial interest in them.”
The BBC alleged that Paul promoted several high-risk meme coins and sold them shortly after. As of this writing, Logan Paul has not publicly responded to these allegations.
In May 2021, Paul promoted an Elon Musk-themed meme coin called Elongate in a video clip that he uploaded to his subscription fan club, the Maverick Club.
“Lengthening made me rich. Elon, baby, let's go! Paul said in his video.
Shortly after, the price of Elongate surged more than 6,000%, reaching an all-time high before plummeting within hours. An anonymous wallet, which the BBC report suggests is linked to Paul's personal wallet, reportedly made $120,000 from the Elongate token sale.
Another related case occurred when Paul promoted a different meme coin related to Musk, commenting that he was heading “to the moon,” indicating that the price of the meme coin was going to skyrocket.
The anonymous wallet purchased nearly $160,000 worth of meme coins an hour before Paul posted the tweet on his social media, causing its price to hit a high thanks to the influx of buyers.
In June 2021, Paul endorsed the “Dink Doink” meme coin, which features a metal coil-shaped cartoon character. He told his followers on x and in a Telegram group that he believed in the token and stated that “it's going to go crazy.”
According Time MagazineAn anonymous wallet allegedly purchased Dink Doink tokens before Paul's promotion, sold them shortly after, and then transferred $100,000 to a wallet the report says is associated with Paul. Paul's attorneys stated that while the wallet may belong to him, the $100,000 transfer had no connection to Dink Doink.
The BBC reportedly tried to contact Paul and his team for an interview, but was turned down again and again. Until one day Paul agreed to an interview at his gym in Puerto Rico. The BBC team reported that they were 'trolled' during an attempted interview, and upon arriving at the scene they found a Logan Paul impersonator and a crowd booing them.
Prior to these accusations, Paul was already in trouble after his foray into the cryptosphere, CryptoZoo, resulted in a multimillion-dollar lawsuit. Paul has repeatedly denied all allegations related to his role at CryptoZoo. Instead, he blamed other team members who he said failed to deliver on promised duties.
On January 4, Logan Paul announced a plan to commit over $2.3 million to the buyback of non-fungible tokens purchased through CryptoZoo. It said it would refund players 0.1 Ether (eth) for each nft purchased.
“The buyback is not intended to compensate those who bet on the cryptocurrency market and lost,” he said, adding that CryptoZoo “was not intended as an investment vehicle.” In 2023, Paul unveiled a similar recovery plan worth $1.3 million.
