A class action lawsuit was filed against YouTube influencer Logan Paul and his associates over the failed crypto project CryptoZoo, according to a Feb. 2 court filing.
A Texas resident Don Holland filed the lawsuit and alleged that the defendants executed a “rug pull.” CryptoZoo was promoted via Paul’s online platforms, convincing thousands of people to purchase the product, according to Holland.
Paul’s associates included in the lawsuit were Danielle Strobel, Jeff Levin, Ebbie Ibanez, Jake Greenbaum, and Ophir Bentov.
The lawsuit alleges CryptoZoo never existed
Holland said he knew his money was likely lost after Logan Paul announced another NFT project and started ignoring CryptoZoo. He added, “CryptoZoo was never released as advertised, and the value of the Zoo Tokens and CryptoZoo NFTs plummeted.”
The берүү stated that the defendants manipulated the digital currency market for Zoo Tokens to their advantage.
«Айыпкерлердин NFT схемасынын бир бөлүгү катары, жоопкерлер CZ NFT сатып алуу үчүн криптовалюта которуунун ордуна, сатып алуучулар кийинчерээк пайда алышат, анын ичинде башка криптовалютага эксклюзивдүү мүмкүнчүлүк алышат деп жалган айтып, CZ NFTтерин сатып алуучуларга сатышкан. активдер жана CZ NFTs колдонуу жана сатуу үчүн онлайн экосистеманы колдоо.
The lawsuit seeks redress from Paul and his associates, who promoted and sold products that did not function as advertised. It further accused them of failing to support 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 filing accused Paul and associates of being negligent, engaging in unjust enrichment, and fraudulent representation. They were also charged with conspiring to commit fraud and violating Texas’ Deceptive Trade Practices Act.
The CryptoZoo NFTs gained wide notoriety following Coffeezilla’s иликтөө into the project. Logan Paul later аныкталган a refund plan for disgruntled investors in the NFTs.
Source: https://cryptoslate.com/logan-paul-faces-class-action-lawsuit-over-failed-cryptozoo-nft-project/