As buyers take some action, a lawsuit is brought against Logan Paul and CryptoZoo.

In a recently filed class-action complaint, CryptoZoo and Logan Paul have indeed been listed as plaintiffs. The lawsuit claims that they stole cryptocurrency valued at thousands of dollars from customers through a “fraudulent venture.” Plaintiff Don Holland claimed in a court document filed on February 2 in the District Court of the Western District of Texas that Paul and executives at CryptoZoo (CZ) “executed a rug pull” by encouraging buyers of the nonfungible tokens (NFTs) exclusive access to cryptocurrency investments among many other advantages, but finally abandoned the company and kept the money.

“As part of Defendants NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CZ NFT, purchasers would later receive benefits, including, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and market CZ NFTs,” as written.

Attorneys from Ellzey & Associates and Attorney Tom and Associates, the latter of whom is the legal practice led by YouTube star Attorney Tom, filed the case.

After “weeks of investigation and speaking to a number of Crypto Zoo victims,” according to Attorney Tom, they are suing Paul over the suspected cryptocurrency scam, he announced to followers of a YouTube broadcast on January 16th. As per Attorney Tom, the lawsuit also names Jake Greenbaum (Crypto King), Ophir Bentov (Ben Roth), Danielle Strobel, Jeff Levin, Eddie Ibanez, and Danielle Strobel.

Paul released a $1.5 million management plan for irate CryptoZoo project investors via a video on Twitter on January 13. Nevertheless, this lawsuit was filed. A lawsuit against CoffeeZilla, he said, “is not going to help Cryptozoo holders” and that instead he should concentrate on his “friends and supporters.” He also disclosed that he is no longer intending to fight CoffeeZilla over his claims that his project is a hoax.

In his three-step rescue plan, Paul stated that the first stage will involve him and Jeff Levin, the other co-founder of CryptoZoo, burning their ZOO token holdings. He made it clear that if they did this, they would “have no financial advantage” in the game and that the holders' tokens would “gain value.” Paul stated that in order for “disappointed” investors to obtain their upfront outlay of 0.1 ETH, the cost to mint the NFT, back in the second stage, he will himself contribute 1,000 Ether to the project. In the meantime, he wants to “deliver the game as outlined in the whitepaper” at the third and last stage.

Logan Paul retracts his defamation claim against Coffeezilla and issues an apology.

Logan Paul, a YouTuber, has removed a video in which he allegedly threatened to sue Stephen “Coffeezilla” Findeisen, an online investigator, over a three-part series calling Paul's CryptoZoo project a “scam.”

In a tweet on January 6 from Coffezilla, Paul allegedly made a commitment to renounce his intentions to file a defamation lawsuit due to the recordings. Findeisen shared an image from the CryptoZoo Discord server along with a note from Paul apologizing and stating that he had removed his earlier answer to Coffeezilla's video series. It said:

“It was rash and misaligned with the trust issue at hand, so I called him today and apologized.”

When Coffeezilla released the first installment of a three-part video series on December 17 charging CryptoZoo of several business misconducts and calling out Paul, the project's face, the two YouTubers got into an argument. Paul charged Coffeezilla with defamation in his since-deleted response video, saying, “I'll see you in court.”

Paul may be “making a third response,” according to Coffeezilla's article, yet as of this posting, neither Paul nor Coffeezilla have provided any additional information.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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