Logan Paul Sued In A Class Action Lawsuit For His Involvement In $7 Million Cryptozoo Scam

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Co-founded by Paul, Liquid Marketplace allows investors to buy fractions of collectibles, like Pokemon cards, sports trading cards, and NFTs. While those items can be worth millions on their own, Liquid allows investors to own a stake in a card for as little as 10 cents. On its launch day on Sept. 3, 2021, the project’s initial 10,000 “Base Eggs” sold out within minutes. One buyer, Dan, who goes by cptdandan online, bought several prime xbt thousand dollars worth of Zoo from his home in Sydney, Australia. Tom Kherkher, an attorney spearheading the effort, alleges that Paul committed fraud, express breach of contract and negligence among other claims, and seeks damages for the some of the people who lost thousands on CryptoZoo. Paul’s initial YouTube response was scathing, alleging that Findeisen had only reached out to him for comment once, on Christmas Eve.

They did so not because they believed in Cryptozoo, but rather, because they truly believed in Logan Paul. In doing so, they inadvertently stepped on the rug, with the Cryptozoo team and Logan firmly holding one end taut, ready to yank it at less than a moment’s notice. It’s an NFT game where players spend zoo coins, CryptoZoo’s in-game money, to buy NFT eggs that hatch into animals. Once hatched, the animals are raised together to create hybrids, and the more uncommon and rarity hybrid, the larger the daily payout of zoo coins. In a nutshell, it’s designed to function similarly to passive income. After mounting public pressure following Coffeezilla’s three-part series, which accrued millions of views, Paul first issued a response video that he said would debunk Coffeezilla’s claims before deleting it two days later.

Coffeezilla Says Logan Paul Still Hasn’t Refunded Cryptozoo Nfts On Joe Rogan Podcast

For the uninitiated, Coffeezilla uploaded a three-part series uncovering the details of Paul’s project, "CryptoZoo." Coffeezilla had uploaded a three-part series uncovering the details of Paul’s project, "CryptoZoo." Before joining 35V, she was a freelance reporter with bylines in AfroTech, HubSpot, The Plug, and Lifewire, to name a few. Off the clock, you can find her producing her crime podcast, The Point of No Return. Each morning get the latest on the business of sports, music, and enetertainment. Paul is no stranger to sitting in the hot seat, but this instance feels different.

Firstly, Logan’s team has stolen the tokens from all its V3 investors, while also lying to the public that he had paid the devs $1M. Zach Kelling, Zoo Labs’s CTO, claims he had a team of “50 engineers” working at a “$50,000 a week” burn rate to build the game and the blockchain tech necessary. TIME asked the analytics company MyChargeBack to conduct blockchain research about Paul’s ties to Dink Doink. In July, when the coin was being traded publicly and still held value, that wallet began cashing out large amounts of DINK for more stable cryptocurrencies like Binance Coin and Tether, according to Spicer. Then, in August, the wallet sent 36.5 Ether—virtually all of the Ether in the account, worth more than $100,000 at the time—straight to Logan Paul’s public account, Spicer’s research shows.

The Investigation Also Raises Questions About "shady Characters" And Internal Drama At The Company

Paul called out several "bad actors," who he says may or may not have stolen millions of dollars from investors — he remained vague while making this point in his video — but were later fired. It seems WWE and its relationship https://www.uniquenewsonline.com/primexbt-scam-or-safe/ with lawsuits is going to be a never-ending tale. Believe it or not, the company is seeing more action outside the ring than inside. In 2023 itself, four cases have been filed against Vince McMahon since his shocking return.

  • Boardroom spoke to Hanke about Niantic’s origin story, the business behind the games his company has developed, and where his tech company is headed next.
  • CryptoZoo and Logan Paul have been named as defendants in a newly filed class-action lawsuit, which alleges they stole millions of dollars worth of purchaser’s cryptocurrency via a "fraudulent venture."
  • Since YouTuber Coffeezilla accused Logan Paul of scamming CryptoZoo gamers, the viral video mogul is passing the blame off to someone else.
  • The plaintiff is a Texas police officer who says he lost about $3,000 from investing in the game.

In his response, Paul is more concerned with dredging up Kelling’s old arrest records in order to delegitimize his claims, along with Instagram posts that were supposed to prove he only had three employees working on CryptoZoo. A quick Facebook scroll shows Keller on Discord with his 26-member “Zoo team” on July 25, 2021, one month before Paul called the dev team “massive” and said it cost “a million dollars” on his podcast. In this video, Paul doesn’t address the second set of developers that Coffeezilla found quit just two months after being hired in July 2022 by Jeff Levin, due to lack of payment. Logan Paul found himself in hot water after promoting Dink Doink in 2021 (Yes! Another one of his achievements from the past two years). Picture via DexertoEvery cloud has a silver lining, and for the investors of Cryptozoo, it has come in an unforeseen way. It reminded everyone who they are dealing with when it comes to Logan Paul.

Here’s How To Earn Cryptocurrency In 2023 With No Investment

As he faces more heat for what might be the second crypto scam rug pull Paul is involved in, he has reinitiated work for Cryptozoo, promising owners of Zoo coins and eggs that the project is still very much in development. The same week Coffee’s series premiered, Logan Paul returned to the Cryptozoo Discord server after over a year of absence, with promises that he is fixing everything. Whether this is a panicked response to being exposed, something he always planned on doing, or some strange combination of both… Text messages from the Cryptozoo group chat were released and they were damning! Discussion of ways to get around SEC rules in order to make the founders money at the cost of their investors.

  • Co-founded by Paul, Liquid Marketplace allows investors to buy fractions of collectibles, like Pokemon cards, sports trading cards, and NFTs.
  • Paul isn’t the only social media influencer to have used their platform to promote crypto schemes.
  • The lead developer told Coffeezilla that Paul owes the more than 30-person development team 5% of the native $ZOO token.
  • But, the CryptoZoo animals can hatch, he said, and the full game is coming, he promised.
  • Episode of his podcast that CryptoZoo is “a really fun game that makes you money.” But that vision hasn’t exactly been realized.
  • After huge public pressure following Coffeezilla’s three-part series, which got millions of views, Paul first issued a response video that we’ll get into later in our video.

He also claimed Findeisen had illegally recorded a phone call with his manager, Jeff Levin. "Your addiction to clicks has clouded your judgment," he railed in the now-deleted video. On launch day, $2.5 million worth of eggs were sold at around $300 eachbefore anyone had even seen any images of the animal NFTs. When the NFTs were eventually released, Findeisen said, some observers remarked that they appeared not to be handmade art but instead "Adobe stock photos mashed together." After two weeks of radio silence — plenty of time for him to consult his lawyers — Paul has released a response video, lashing out at Findeisen and accusing him of spreading gossip without sufficient research.

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After huge public pressure following Coffeezilla’s three-part series, which got millions of views, Paul first issued a response video that we’ll get into later in our video. And the developers were never paid the $1 million or given the 5 percent of the tokens they were verbally promised by one of CryptoZoo’s founders, Eddie Ibanez. Ibanez was exposed by Billy Penn reporter Adam Robb in 2022 for falsely claiming he went to MIT, worked with the CIA, and even helped the Eagles win the 2018 Super Bowl ring, among other allegations. Even though Jeff Levin, another co-founder and Paul’s manager, was informed of the falsities before the CryptoZoo launch, Ibanez remained on the team.

logan paul crypto scam

Coffeezilla had made against his crypto game project, CryptoZoo, and said he intends to sue Coffeezilla, whose real name is Stephen Findeisen, for defamation. Paul himself openly advocated that children get involved with CryptoZoo. Imagine if your first experience on the blockchain https://marketbusinessnews.com/what-is-the-primexbt-scam-or-not/330899/ is with CryptoZoo,” Paul told Forbes. On January 13th, Paul pledged to relinquish his stake in the game, refund holders at least $1.3 million, and finish the game. “To say I am disappointed in how this was handled internally is an understatement,” he said at the time.

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