CryptoZoo and Logan Paul may be involved in crypto fraud.
2023.02.03 03:37
CryptoZoo and Logan Paul may be involved in crypto fraud.
By Tiffany Smith
Budrigannews.com – A new class-action lawsuit claims that CryptoZoo and Logan Paul committed a “fraudulent venture” by stealing millions of dollars’ worth of a customer’s cryptocurrency. Both companies have been named as defendants in the suit.
Don Holland, a plaintiff, claimed in a court filing 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 promising purchasers of the nonfungible tokens (NFTs) exclusive access to crypto assets among other benefits, but abandoned the project and retained the funds.
“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,” it wrote. “As part of Defendants’ NFT scheme,” it continued, “Defendants marketed CZ NFTs to purchasers by falsely claiming.
We have officially filed a class action lawsuit against Logan Paul and others in the Western District of Texas. for the blunder at CryptoZoo. This is in addition to the numerous arbitration cases on the subject.) pic.twitter.com/BIC5v63TGZ
“Defendants, together with others […] transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants,” it alleged. “In fact, shortly after the completion of the sale of all their CZ NFTs.”
Attorneys from Ellzey & Associates and Attorney Tom and Associates, the law firm run by YouTube personality Attorney Tom, filed the lawsuit.
Attorneys from Ellzey & Associates and Attorney Tom and Associates, the law firm run by YouTube personality Attorney Tom, filed the lawsuit.
According to Attorney Tom, the suit also names Eddie Ibanez, Danielle Strobel, Jeff Levin, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth) as additional defendants.
Despite Paul’s Twitter video on January 13 announcing a $1.5 million recovery plan for disgruntled CryptoZoo project investors, this lawsuit has been filed.
He also said that he will no longer sue CoffeeZilla over his claims that his project is a scam. He said that suing him would “not help Cryptozoo holders,” and he wants to concentrate on “fans and supporters of him.”
Paul stated that there will be three stages to his recovery plan, with the first stage consisting of burning his and Jeff Levin’s ZOO token holdings.
He clarified that doing so would “add value to the holders’ tokens” and would “have no financial upside” in the game.
Paul claimed that the second stage would require him to personally contribute 1,000 Ether (ETH) to the endeavor in order for investors who have been left disappointed to burn their NFTs in order to recover their initial investment of 0.1 ETH, which covers the cost of minting the NFT.
He hopes to “deliver the game as outlined in the whitepaper” during the third and final stage.
More:
U. S. will begin checking against Silvergate in FTX case
U. S. Senate will develop regulatory framework for cryptocurrencies
