Logan Paul Faces Class Action Lawsuit Over Alleged CryptoZoo NFT Rug Pull
American media personality, professional wrestler, and actor Logan Paul is one of the defendants in a class action lawsuit filed against failed non-fungible token (NFT) project CryptoZoo.
The class action, filed by police officer Don Holland on behalf of 20,000 other victims, alleges that Paul and other defendants executed a rug pull after manipulating the price of CryptoZoo’s native token (ZOO).
Logan Paul Sued for Defrauding CryptoZoo Investors
According to the document, the complaint was filed in the United States District Court for the Western District of Texas on Thursday. Other defendants mentioned include Danielle Strobel, Jeffrey Levin, Jake Greenbaum, known as Crypto King, Eduardo Ibanez, and Ophir Bentov, known as Ben Roth.
The complaint comes shortly after famous internet journalist Stephen Findeisen, known as Coffeezilla, claimed the CryptoZoo project was fraudulent in a three-part series on YouTube.
CryptoZoo was launched in 2021 as an NFT gaming project, with Paul as one of its founders. The project was promoted using Paul’s online platforms as a means of passive income. Investors committed over $2 million to CryptoZoo before its launch, and the ZOO token skyrocketed in value.
Over a year later, no games have materialized, and the project’s social media accounts have been inactive. Coffeezilla accused Paul of stealing millions from investors and abandoning the project afterward.
As reported earlier, Paul accused Coffeezilla of spreading misinformation and threatened to sue him for defamation. However, in a surprising turn of events, Paul later apologized and promised to fix things.
But victims of the failed project have taken legal action against the WWE star and his CryptoZoo partners, accusing them of executing a rug pull and failing to deliver on their promises.
“The Defendants promoted CryptoZoo’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products. Unbeknownst to the customers, the game did not work or never existed, and the Defendants manipulated the digital currency market for Zoo Tokens to their advantage,” the filing stated.
A Disgorgement Request
The defendants were charged with eight counts, including fraud, unjust enrichment, and breach of contract.
The class action seeks redress from them and disgorgement of any profit gained from the project.
“Due to these unconscionable practices, Defendants should disgorge any revenue, profits, or any other gains from their scheme to Plaintiff,” the filing added.
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