Class Action Filed Against Logan Paul, CryptoZoo
Jarrett Uncategorized
Logan Paul and the Co-Defendants promised a product — this NFT ecosystem, the ability to change animals — and promoted the product as an investment game that would make the players money. As those words were being spoken to unwitting consumers investing millions collectively in CryptoZoo, there was no product and no solid plan or timeline for completing it. There’s still no product. But all the money the consumers spent in reliance on Mr. Paul’s promotions is still out there in someone’s pockets. We are confident this case will allow us to correct this wrong for Mr. Holland and the other effected class members, despite the defendants’ efforts to bolt on waivers to their website “terms and conditions” ex post facto. That doesn’t work in Texas.
CryptoZoo Lawsuit Article
https://www.buzzfeednews.com/article/tomwarren/logan-paul-cryptozoo-class-action-lawsuit
“YouTube star Logan Paul and associates in an online game project called CryptoZoo were named in a proposed class action lawsuit alleging they took millions of dollars’ worth of participants’ cryptocurrency through a “fraudulent venture.”
“Defendants promoted CryptoZoo’s products using Mr. Paul’s online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products,” yesterday’s filing reads. “Unbeknownst to the customers, the game did not work or never existed, and the Defendants manipulated the digital currency market for Zoo Tokens to their advantage.”
The suit was filed in the Western District of Texas by Ellzey & Associates and Attorney Tom and Associates, a law firm run by YouTube personality Tom Kherkher, better known as Attorney Tom. It says that CryptoZoo was a “rug pull,” a type of scam in which the developers of an NFT promise a host of benefits and then abandon the project, absconding with the money.
Paul announced CryptoZoo in 2021. Participants could purchase cryptocurrency that allowed them to buy eggs in a digital game. Players were then supposed to be able to hatch those eggs, raising animals that would act as NFTs. Those animals could be bred to create hybrid creatures. Holders could potentially earn profits by selling their animals for crypto. Paul promised big things for the company and hyped it on his social media channels.
After finishing the sale of all the CryptoZoo NFTs, the defendants and others “transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants,” according to the filing.
“At the end of the day, Logan Paul and his friends promised this game — this ecosystem, the ability to change animals — and it just doesn’t exist, and it has never existed,” Kherkher told BuzzFeed News in an interview.”
CryptoZoo Class Action Lawsuit