Investors accuse Logan Paul of NFT token fraud and money theft

According to a court filing dated February 2, YouTube vlogger Logan Paul and his partners are accused of fraud with non-fungible tokens and stealing investors' funds. Users who lost their money by purchasing tokens from the CryptoZoo NFT collection filed a class action lawsuit against Paul.

«Logan Paul and his accomplices advertised CryptoZoo products using Paul’s social media. Tens of thousands of people purchased the fraudulent NFTs,» the class action lawsuit says. It is believed that the founders of CryptoZoo used a standard fraudulent scheme — they promised large profits, received investors' funds, and then withdrew the project’s liquidity (rug pull).

We have officially filed a class action lawsuit in the Western District of Texas against Logan Paul et al. for the CryptoZoo fiasco. (This is in addition to the numerous cases heading to arbitration on the matter.) pic.twitter.com/BIC5v63TGZ

— AttorneyTom (@attorney_tom) February 2, 2023

The defrauded investors filed a lawsuit after the publication of a series of investigations by a CoffeeZilla journalist who, in a three-part series, explained why he believes the project is fraudulent. Earlier, Logan Paul planned to sue the journalist for «defamation».

On January 13, Paul unveiled a plan to restore CryptoZoo and return $ 1.5 million to users. Announcing this step in a video posted on Twitter, Paul reiterated that he was no longer going to sue his YouTube colleague. «The fact is, a lawsuit against Coffeezilla won’t help the owners of Cryptozoo, so I need to focus my attention where it should be, which is on my fans and supporters ,» the crypto fraudster emphasized.

The community’s reaction to Paul’s Twitter post was mixed: some supported the blogger, while others continued to criticize him. However, such actions obviously did not help him save his reputation.