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

A category motion lawsuit was filed towards YouTube influencer Logan Paul and his associates over the failed crypto challenge CryptoZoo, in response to a Feb. 2 courtroom submitting.

A Texas resident Don Holland filed the lawsuit and alleged that the defendants executed a “rug pull.”  CryptoZoo was promoted by way of Paul’s on-line platforms, convincing hundreds of individuals to buy the product, in response to Holland.

Paul’s associates included within the lawsuit had been Danielle Strobel, Jeff Levin, Ebbie Ibanez, Jake Greenbaum, and Ophir Bentov.

The lawsuit alleges CryptoZoo by no means existed

Holland stated he knew his cash was seemingly misplaced after Logan Paul introduced one other NFT challenge and began ignoring CryptoZoo. He added, “CryptoZoo was never released as advertised, and the value of the Zoo Tokens and CryptoZoo NFTs plummeted.”

The filing said that the defendants manipulated the digital foreign money marketplace for Zoo Tokens to their benefit.

“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.”

The lawsuit seeks redress from Paul and his associates, who promoted and offered merchandise that didn’t operate as marketed. It additional accused them of failing to assist the CryptoZoo challenge and manipulating the digital foreign money.

“[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 submitting accused Paul and associates of being negligent, participating in unjust enrichment, and fraudulent illustration. They had been additionally charged with conspiring to commit fraud and violating Texas’ Misleading Commerce Practices Act.

The CryptoZoo NFTs gained vast notoriety following Coffeezilla’s investigations into the challenge. Logan Paul later revealed a refund plan for disgruntled traders within the NFTs.