Logan Paul may have to face harsher consequences for his CryptoZoo stunt.
The popular YouTuber recently became the recipient of a class-action lawsuit for allegedly performing a "rug pull" on CryptoZoo's investors.
Interestingly, attorneys from Ellzey & Associates and Attorney Tom and Associates submitted the lawsuit to court, with the latter law firm run by YouTube personality Attorney Tom.
Logan Paul CryptoZoo Lawsuit Details
In a Feb. 2 court filing in the District Court of the Western District of Texas, plaintiff Don Holland, on behalf of himself and his fellow investors, alleged that Paul and the executives at CryptoZoo falsely claimed in their marketing campaign that purchasers of CryptoZoo NFTs would later receive benefits.
These benefits include, but are not limited to, rewards, exclusive access to other cryptocurrency assets, and support of an online ecosystem to use and market CryptoZoo NFTs.
However, instead of holding true to their promise, Paul and CryptoZoo executives transferred millions of dollars worth of purchasers' cryptocurrency to their digital wallets, among other places, in a rug pull maneuver.
For those unaware, a rug pull is a colloquial way of describing instances wherein a crypto developer raises funds for a new token or NFT line, promising certain benefits to investors, but abandoning the project midway and failing to deliver the promised benefits, all the while retaining the funds investors gave them, per Decrypt.
Additionally, Holland claimed that Paul and CryptoZoo's executives used the latter's online platforms and community to promote CryptoZoo's products to consumers unfamiliar with digital currency products. This marketing plan led tens of thousands of people to purchase CryptoZoo's products.
However, what the customers didn't know was that the game did not work or never existed and that Paul and CryptoZoo executives manipulated the digital currency market for Zoo tokens to their advantage.
BBC's report seems to support Holland's claim, with the broadcasting network stating that no game has materialized more than a year after CryptoZoo's launch, and Paul had apparently abandoned the project.
What Was CryptoZoo Supposed To Be?
The lawsuit comes after Paul publicly apologized and dropped lawsuit threats to CoffeeZilla over his allegations that his project is a scam.
Paul previously announced CryptoZoo in 2021, a crypto game that had participants purchase cryptocurrency that allowed them to buy eggs in a digital game, per Buzzfeed News. Participants were then supposed to hatch these eggs, raising the animals that would come from them and act as NFTs.
The game's participants could then breed these animals to create hybrid creatures, which the game's participants can sell for cryptocurrency.
All the while, Paul used his social media presence to encourage people to buy CryptoZoo's cryptocurrency collectibles for what he called a "really fun game that makes you money." However, he eventually abandoned the project, with prominent YouTube Coffeezilla calling him out on his scamming of his followers, per Gizmodo. According to the YouTube video series he made, CryptoZoo investors and Paul's followers claim that there was no way to either cash out or hatch the eggs they purchased at all.
Paul previously attempted to refute CoffeeZilla's allegations but eventually apologized to his fellow YouTuber over the phone.
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