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YouTuber Logan Paul has been named in a lawsuit against his project CryptoZoo, which has been accused of fraudulently stealing millions from investors.
Logan Paul Faces Class Action Lawsuit
A class action lawsuit has been brought against Logan Paul and his CryptoZoo project by plaintiff Don Holland, who alleges that the project has done a ‘rug pull’ by leaving the CryptoZoo NFT project. According to Holland, the project attracts investors by promising exclusive access to crypto assets and other benefits and leaves the project without returning customer funds. The filing also alleges that the defendants transferred millions of dollars worth of investor funds to their own wallets.
The court documents filed by the plaintiff read,
“As part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to buyers falsely claiming that, in return for transferring cryptocurrency to purchase CZ NFTs, buyers would later receive benefits, including, among other things, gifts, exclusive access to the currency other crypto assets, and online ecosystem support for using and marketing CZ NFT.”
Major Players In The Lawsuit
The lawsuit also names other defendants, including Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth). For the legal battle, Holland has hired attorneys from Ellzey & Associates and Attorney Tom and Associates for the legal battle. Lawyer Tom is a YouTube personality who recently released a video on his channel stating that they slapped Paul with a class action lawsuit for the attempted scam after speaking to other victims of the alleged scam.
KopiZilla Vs. Logan Paul
The nature of the project in question first came into the spotlight when internet detective Stephen “Coffeezilla” Findeisen released a three-part documentary, labeling the CryptoZoo project a fraud. Soon after, Paul released his own video, threatening to sue Coffeezilla. However, he immediately followed up by deleting the post and vowing not to follow up on it defamation suitclaiming that it will not benefit investors.
Logan Paul Recovery Plan
A recent class action lawsuit against Paul has been filed despite him detailing a three-step recovery plan to save the project. He has stated that in the first phase, he and CryptoZoo co-founder Jeff Levin will burn their private holdings of ZOO tokens to add value to token holders. Second, Paul will personally provide 1000 ETH to the project to enable investors to recoup their initial investment of 0.1 ETH, which is their NFT printing fee. Finally, he claims that he will work to deliver the game that was outlined and promised in the whitepaper.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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