Crypto YouTuber Logan Paul Faces Lawsuit Over Alleged Rug Pull

• A case has been filed towards CryptoZoo and Logan Paul for stealing crypto.
• The plaintiff contended that Paul and executives at CryptoZoo executed a rug pull.
• Beforehand, the YouTuber tweeted a couple of $1.5 million restoration plan for the victims.

Well-known crypto Youtuber Logan Paul and CryptoZoo have been named as defendants in a newly filed class-action lawsuit, which alleges they stole thousands and thousands of {dollars} value of crypto by way of a fraudulent enterprise.

Plaintiff Don Holland filed the grievance towards Paul and different executives at CryptoZoo (CZ) on February 2 in a US District Court docket, alleging that they executed a rug pull by promising patrons of the non fungible tokens (NFTs) unique entry to crypto belongings together with different advantages. Nonetheless, they deserted the challenge and stored the cash.

The lawsuit learn partially:

[They] marketed CZ NFTs by falsely claiming that purchasers would obtain advantages, rewards, and unique entry to different crypto belongings. Quickly after finishing the sale, the Defendants transferred thousands and thousands of {dollars} value of purchasers’ crypto to wallets managed by Defendants.

Attorneys from Ellzey & Associates and Legal professional Tom submitted the lawsuit within the District Court docket of the Western District of Texas.

After weeks of investigation and chatting with many Crypto Zoo victims, Legal professional Tom introduced on a YouTube video posted on January 16 that they had been suing Paul for the crypto rip-off. Legal professional Tom additionally named Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth) defendants.

On January 13, Paul tweeted a $1.5 million restoration plan for CryptoZoo traders. Within the Twitter video, he said that suing CoffeeZilla wouldn’t assist Cryptozoo holders and that he needed to concentrate on his followers and supporters.

Paul’s three-step rehabilitation plan would start with him and CryptoZoo co-founder Jeff Levin burning their ZOO tokens to “add worth to the holders’ tokens.”