A well-known YouTuber and wrestler, Logan Paul, has been included in a class-action lawsuit along with a few of his associates over non-fungible token (NFT) sales for a project Paul promoted called CryptoZoo that never existed.
Don Holland, a citizen of Texas, filed the action on February 2nd, alleging that the defendants engaged in “rug pulling” by using Paul’s online platforms to market the NFT project and persuade thousands of others to buy it.
Danielle Strobel, Jeff Levin, Ebbie Ibanez, Jake Greenbaum, and Ophir Bentov were Paul’s associates who were named in the complaint.
Attorneys from Ellzey & Associates and Attorney Tom Associates will defend Don Holland, the plaintiff. Attorney Tom Associates are well known for operating the “Attorney Tom” YouTube channel.
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
Logan Paul Charged With Unjust Enrichment
According to the plaintiff’s allegations, Logan Paul and his partner investors offered NFT investors access to cryptocurrency assets as well as other perks in exchange for their NFT purchases, but they ultimately abandoned the project and kept the money for themselves.
“Defendants operated this fraudulent venture to exploit and steal from Plaintiff and other customers who trusted Mr. Paul’s false representations.” Don Holland said as much in the document. “As a result, defendants defrauded the plaintiff and thousands of other consumers, and unjustly enriched themselves by profiting off Plaintiff and others without delivering on their promises.”
The complaint alleged negligence, unjust enrichment, and false representation on the part of Paul and his partners. They were also accused of breaking Texas’ Deceptive Trade Practices Act and conspiring to conduct fraud.
The lawsuit demands compensation from Logan Paul and other defendants for “fraudulently” endorsing and offering products that did not live up to their promised capabilities.
Paul has faced accusations in the past as well. A YouTube journalist named Coffeezilla challenged the boxer for engaging in shady behavior with the NFT earlier this year.
The CryptoZoo NFTs became well known when Coffeezilla looked into the concept. Later, Logan Paul disclosed a $1.5 million refund scheme for irate NFT investors.
He intends to personally commit 1,000 Ethereum (ETH) to the project during the second stage, allowing “disappointed” investors to burn their NFTs and recover their initial 0.1 ETH (the cost of minting the NFT) investment.
