Youtube megastar Logan Paul is facing a class action lawsuit over his CryptoZoo NFT project, accused of being a rug jerk. The allegations claim that Logan raised funds for the web3-based animal-themed game that simply doesn’t exist. The lawsuit comes after Logan Paul takes responsibility and takes steps to recover losses from investors. He read on to find out more about the lawsuit and the future of Logan Paul’s CryptoZoo project.
Logan Paul and CryptoZoo: What happened?
Youtube and NFT superstar Logan Paul’s crypto/NFT gaming project, CryptoZoo, could be a “rug pull”. To clarify, this is in accordance with the class action lawsuit filed against him. A “rug pull” is usually when a crypto founder scams their community. The founder first raises funds and then abruptly leaves the project and its community, taking the funds with them.
According to a U.S. District Court filing for the Western District of Texas, the founders of CryptoZoo defrauded the community into buying a non-existent project. The lawsuit claims that the company (and Logan himself) tricked online superstars into buying “unknown digital currency products.”
Additionally, the project intends to market itself as a digital collectible that offers benefits, exclusive access, and more to its community. To add to this, the project also aims to provide its collectors with an exclusive online ecosystem to use and trade NFTs. The presentation then goes on to claim that the game never existed or was in development. And it also claims that the “defendants manipulated the Zoo Tokens digital currency market for their benefit.”
The Coffeezilla Effect
In addition, the lawsuit alleges that shortly after the NFT sale, the defendants transferred the funds directly to wallets controlled by them. The YouTuber, with (currently) over 23 million subscribers, appears to have misused his influence to steal money from his community. Crypto journalist and Youtuber Coffeezilla also posted a series of videos exposing Logan and the CryptoZoo project. After much back and forth between the parties, Logan took to Twitter last month to apologize to his fans and his community. He then announced a $1.3 million reward program for affected players.
Logan Paul’s fellow associates Danielle Strobel (Paul’s assistant), Jeff Levin (manager) are defendants in the lawsuit. In addition, Ebbie Ibanez (main developer), Jake Greenbaum (co-founder of CryptoZoo aka Crypto King) and others were also named in the lawsuit. It also establishes that the team committed fraud due to the game not working. “The wrong done to Plaintiff by Defendants was accompanied by fraudulent, malicious, intentional, willful, lewd, or reckless conduct that evinced a knowing disregard for Plaintiff’s rights.” state the filling. “Therefore, Plaintiff is seeking punitive damages in an amount to be proven at trial.” NFTevening continues to follow the story as it unfolds.
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