Logan Paul and the executives at CryptoZoo are facing a class-action lawsuit for allegedly stealing millions of dollars worth of cryptocurrency through a fraudulent venture. The lawsuit, filed by attorneys from Ellzey & Associates and Attorney Tom and Associates, claims that Paul and the CryptoZoo team promised NFT buyers numerous benefits, including access to cryptocurrency assets and rewards.
We have officially filed a class action lawsuit in the Western District of Texas against Logan Paul et al. for the CryptoZoo fiasco. (This is in addition to the numerous cases heading to arbitration on the matter.) pic.twitter.com/BIC5v63TGZ
— AttorneyTom (@attorney_tom) February 2, 2023
However, the team is accused of retaining funds and transferring the purchasers’ cryptocurrency to wallets controlled by them. The lawsuit lists several charges including fraud, breach of contract, unjust enrichment, and conspiracy to commit fraud.
This is not the first time that Paul has been accused of fraudulent activities in the NFT space. In the past, YouTube journalist Coffeezilla accused Paul and his team of indulging in fraudulent activities with the NFT play-to-earn game. The journalist alleged that Paul’s team did not spend $1 million in building the game and simply copied the code from FlokiShibX, claiming it as their own original game. Furthermore, he claimed that people lost millions after buying marketing and promises from the game.
The latest lawsuit has raised serious concerns about the legitimacy of the NFT industry and the role that celebrities like Logan Paul play in promoting NFTs to the general public. As the NFT market continues to grow, it is crucial for investors to thoroughly research the projects they are investing in and to be aware of the potential risks involved.