Logan Paul, a YouTube influencer, is among five people getting sued at the time of writing for allegedly instigating a crypto and NFT fraud scheme.
Logan Paul Is the Subject of a Crypto Lawsuit
The lawsuit – filed by Houston based attorney firms Tom & Associates and Ellzey & Associates – represents Don Holland, a Round Rock police officer that allegedly fell victim to the scam (known as Crypto Zoo).
Holland claims in court documents that Crypto Zoo was a rug pull. The platform allowed customers to purchase in-game non-fungible tokens (NFTs) that they could then use to garner items in an interactive game. Holland states that many of the individuals involved in establishing the game quietly made their own in-game purchases, then sold the NFTs for profit without telling users of the platform.
In addition, it’s said that several of the NFTs purchased by users did not lead to any profits or rewards and that the developers stopped establishing new NFTs without notice. A spokesperson for Ellzey & Associates put out the following statement:
Logan Paul and the co-defendants promised a product (this NFT ecosystem, the ability to change animals) and promoted the product as an investment game that would make the players money. As those words were being spoken to unwitting consumers investing millions collectively in Crypto Zoo, there was no product and no solid plan or timeline for completing it. There’s still no product, but all the money the consumers spent in reliance on Mr. Paul’s promotion is still out there in someone’s pockets. We are confident this case will allow us to correct this wrong for Mr. Holland and the other affected class members despite the defendants’ efforts to bolt on waivers to their website ‘terms and conditions’ ex post facto. That doesn’t work in Texas.
Paul is denying he had anything to do with the mishaps occurring with the platform. He commented in an interview:
I will no longer be the scapegoat for anyone’s financial decisions. I know I never scammed anybody, never made any money, never sold any tokens, and I only had the best intentions going in.
Tom Kherkher of Tom & Associates says that while the main plaintiff is Don Holland, he and his team have already begun discussing the case with alleged Crypto Zoo victims from all over the world to see about turning the present case into a class-action suit. He mentioned:
We are committed to getting justice for the numerous victims of the Crypto Zoo fiasco and ensuring the parties responsible are held accountable.
Jake Ain’t too Happy with Biden
Not long ago, Logan Paul’s brother Jake took issue with the crypto winter of 2022 and blamed Joe Biden for falling crypto prices.
Paul claimed that anybody who voted for Biden but refused to acknowledge they’d made a mistake in doing so were part of the “American problem.”
Tags: Crypto Zoo, Logan Paul, NFTs
This article has been originally published at: https://www.livebitcoinnews.com/logan-paul-sued-over-alleged-nft-fraud-scheme/