Logan Paul Slaps in Lawsuit Over CryptoZoo

CryptoZoo, an NFT project founded by Logan Paul, has become a topic of public discussion after crypto journalist Coffeezilla exposed a shady crypto project. subject of litigation.

Internet influencer Logan Paul and his NFT project CryptoZoo were sued Thursday for stealing user funds and performing a lag pull to abandon the project.

A lag pull is a form of fraud done by luring people into investing in a new crypto project, after which the team behind this project suddenly withdraws or dumps all their tokens on an exchange. , making the coin worthless instantly.

Logan Paul nailed

The lawsuit against Logan Paul was filed by attorneys for Ellzey & Associates and Attorney Tom and Associates on behalf of Round Rock police officer and CryptoZoo victim Don Holland.

Holland, on behalf of other victims, has accused Paul of making false statements about promises made to CryptoZoo’s NFT purchasers. “Benefits that include rewards, exclusive access to other cryptocurrency assets, and online ecosystem support, among other things.”

The plaintiff “In practice, immediately after the sale of all CZ NFTs was completed, the defendants […] Transferred millions of dollars worth of buyers’ cryptocurrencies to wallets controlled by the defendants, among other things. ”

Besides Paul, the list of defendants also includes assistant Daniel Strobel, manager Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King) and Ophir Bentoff (Ben Ross). increase.

The lawsuit comes after the CryptoZoo founders took responsibility for the project’s failure. On January 13th, Paul unveiled a recovery plan to retaliate against disappointed investors.

He said the plan started with a rewards program worth $1,3 million.

Fraudulent

In summary, the controversial vlogger created the NFT game CryptoZoo in 2021.

Much of the excitement came from Paul’s marketing efforts for CryptoZoo as an original, fun, and money-making game. According to Paul, the most anticipated aspect is his NFT, handcrafted by the team.

However, Coffeezilla said CryptoZoo is likely a scam. Potential investors and users have purchased her NFT and ZOO tokens from the project. But the game isn’t over yet.

Digging deeper into the issue, it appears that there was an insider issue. Logan Paul claimed that the project’s core developers fled with the source code. The developer, on the other hand, refused to complete the project because Paul claimed he hadn’t paid the developer.

Logan Paul and his NFT interests may not align perfectly, or fail if not possible.

Influencers tried to pitch another failed project, Dink Doink, a meme token. It was later discovered that Paul helped create the meme character.

Are there any bright spots for NFTs in 2023?

A bear market has dominated the cryptocurrency industry throughout 2022.

As a result, NFT sales plummeted and several collections fell apart. A similar situation happened to a celebrity who previously created his own NFT collection to utilize hooplas.

However, analysts expect Web3 to play a role in the end of winter for blockchain games, NFTs, DAO development, and cryptocurrencies.

Experts say established businesses using Web3 will help end the cold weather early, and blockchain games will increase the appeal of cryptocurrencies.

Looking ahead to 2023, the favorable market conditions and rising momentum of cryptocurrencies are in question.

If the market is bullish, there is a good chance that the NFT and Metaverse industry will gain traction and rebound.

This could also help push up the price of huge NFT collections, which would encourage even more potential artists to create new collections and additional companies to come up with new advancements in the metaverse.