Feb 3, 2023 11:44 UTC
Feb 3, 2023 at 11:44 UTC
Logan Paul and CryptoZoo hit with lawsuit as investors take action
Plaintiff Don Holland has filed a case against CryptoZoo and Logan Paul, professing the YouTube influencer’s “ fraudulent venture ” executing a “ rug pull.”
CryptoZoo and Logan Paul have been named as defendants in a recently filed class- action action, which alleges they stole millions of bones worth of purchaser’s cryptocurrency via a” fraudulent adventure.”
In a court form on Feb. 2 in the District Court of the Western District of Texas, complainant Don Holland contended that Paul and directors at CryptoZoo( CZ) “ executed a ‘ rug pull ’” by promising purchasers of the nonfungible commemoratives( NFTs) exclusive access to crypto means among other benefits, but eventually abandoned the design and kept the finances.
” As part of Defendants ’ NFT scheme, Defendants retailed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to buy the CZ NFT, purchasers would latterly admit benefits, including, among other effects, prices, exclusive access to other cryptocurrency means, and the support of an online ecosystem to use and vend CZ NFTs,” it wrote.
” In reality, soon after completing the trade of all their CZ NFTs, Defendants, together with others(.) transferred millions of dollars ’ worth of purchasers ’ cryptocurrency to, among other places, holdalls controlled by Defendants,” it contended.
The action was submitted by attorneys from Ellzey & Associates and Attorney Tom and Associates, the ultimate of which is the law establishment run by YouTube personality Attorney Tom.
In a YouTube video onJan. 16, Attorney Tom told observers that they’re suing Paul over the contended crypto fiddle after “ weeks of disquisition and speaking to a number of Crypto Zoo victims. ”
Other defendants named in the suit include Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum( Crypto King) and Ophir Bentov( Ben Roth), according to Attorney Tom.
This action comes despite Paul unveiling a $1.5 million recovery plan for displeased investors in the CryptoZoo design via a videotape on Twitter onJan. 13.
He also revealed that he’s no longer going to sue CoffeeZilla over his allegations that his design is a fiddle , stating that suing him is “ not going to help Cryptozoo holders, ” adding that he wants to concentrate on “ suckers and sympathizers of him. ”
Paul outlined his recovery plan will correspond of three stages — stating the first stage will be himself and theco-founder of CryptoZoo, Jeff Levin, burning their ZOO token effects.
He clarified in doing this they will “ have no fiscal downside ” in the game, and it’ll “ add value to the holders ’ commemoratives. ”
Paul claimed the alternate stage will involve him tête-à-tête committing 1,000 Ether
ETH tickers down$ 1,643 to the design so that “ disappointed ” investors can burn their NFTs to get their original investment of0.1 ETH back, the cost to mint the NFT.
Meanwhile the third and final stage he hopes to “ deliver the game as outlined in the whitepaper. ”