Logan Paul and CryptoZoo sued in class action lawsuit

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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 Paul over 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.

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