Logan Paul faces class-action lawsuit over failed CryptoZoo NFT project

According to a Feb. 2 court filing, a class action complaint was launched against YouTube star Logan Paul and his colleagues over the failed cryptocurrency project CryptoZoo.

Don Holland, a Texas citizen, brought the claim, alleging that the defendants committed a “rug pull.” According to Holland, CryptoZoo was pushed using Paul's web venues, enticing thousands of individuals to buy the product.

Danielle Strobel, Jeff Levin, Ebbie Ibanez, Jake Greenbaum, and Ophir Bentov were among Paul's associates named in the lawsuit.

The lawsuit alleges CryptoZoo never existed

Holland stated that he realized his money was most likely gone after Logan Paul announced another NFT project and began ignoring CryptoZoo. “CryptoZoo was never published as claimed, and the value of the Zoo Tokens and CryptoZoo NFTs plunged,” he continued.

According to the filing, the defendants took advantage of the digital currency market for Zoo Tokens.

“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 such as rewards, exclusive access to other cryptocurrency assets, and support from an online ecosystem to use and market CZ NFTs.”

The complaint demands restitution from Paul and his collaborators, who promoted and sold defective products. It also accused them of abandoning the CryptoZoo project and manipulating the digital currency.

“[The] Defendants defrauded Plaintiff and thousands of other consumers, and unjustly enriched themselves by profiting off Plaintiff and others without delivering on their promises.”

The petition charged Paul and his accomplices with negligence, unjust enrichment, and fraudulent representation. They were also charged with fraud conspiracy and violation of Texas' Deceptive Trade Practices Act.

Following Coffeezilla's inquiry of the project, the CryptoZoo NFTs attracted widespread attention. Logan Paul later offered a refund plan for NFT investors who were dissatisfied.

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!