Tuesday, 23 July 2024

Crypto News

Logan Paul and CryptoZoo sued in class action lawsuit

Logan Paul and CryptoZoo sued in class action lawsuit

CryptoZoo and Logan Paul have been named as defendants in a newly filed class-action lawsuit, which alleges they stole millions of dollars worth of purchaser’s cryptocurrency via a “fraudulent venture.”

In a court filing on Feb. 2 in the District Court of the Western District of Texas, plaintiff Don Holland alleged that Paul and executives at CryptoZoo “executed a ‘rug pull'” by promising purchasers of the nonfungible tokens (NFTs) exclusive access to crypto assets among other benefits but ultimately abandoned the project and kept the funds.

“As part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CZ NFT, purchasers would later receive benefits, including, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and market CZ NFTs,” it wrote.

“In reality, soon after completing the sale of all their CZ NFTs, Defendants, together with others […] transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants,” it alleged.

The lawsuit was submitted by attorneys from Ellzey & Associates and Attorney Tom and Associates, the latter of which is the law firm run by YouTube personality Attorney Tom.

In a YouTube video on Jan. 16, Attorney Tom told viewers that they are suing Logan Paul for the alleged crypto scam after “weeks of investigation and speaking to a number of Crypto Zoo victims.”

Other defendants named in the suit include Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth), according to Attorney Tom.

This is a developing story and more information will be added as it becomes available.