CryptoZoo, an NFT project founded by Logan Paul, has been the topic of public debate after crypto journalist Coffeezilla exposed the shady crypto project. Now Paul and his mates are the latest targets of a lawsuit.
Internet influencer Logan Paul and his NFT project CryptoZoo were sued Thursday for allegedly executing a rug pull to steal users’ funds and abandon the project.
A rug pull is a form of a scam conducted by attracting people to invest in a new crypto project, then the team behind this project suddenly withdraws or dumps all tokens on the exchange, rendering the coin immediately worthless.
Logan Paul Gets Nailed
The lawsuit against Logan Paul was filed by attorneys from Ellzey & Associates and Attorney Tom and Associates, representing Don Holland, a police officer residing in Round Rock and a CryptoZoo victim.
Holland, on behalf of other victims, accused Paul of making a false statement that promised CryptoZoo’s NFT purchasers “benefits, including, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem.”
The plaintiff claimed that “In reality, soon after completing the sale of all their CZ NFTs, Defendants, together with others […] transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants.”
Apart from Paul, the list of defendants also includes his assistant Danielle Strobel, his manager Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King), and Ophir Bentov (Ben Roth).
The lawsuit came after CryptoZoo’s founder voiced his responsibility for the failure of the project. On Jan. 13, Paul revealed a recovery plan to repay disappointed investors.
He said that the plan started with the rewards program worth $1,3 million. Moreover, Paul also highlighted that he no longer sought to sue Coffeezilla.
To sum up, the controversial vlogger created the NFT game CryptoZoo in 2021.
Much of the excitement stirred from Paul’s marketing efforts that CryptoZoo was an original, fun, money-making game. The most expected aspect is hand-made NFTs, which were created by the team, according to Paul.
But Coffeezilla said that CryptoZoo probably was a scam. Potential investors and users bought NFT and ZOO tokens from the project. But the game has never been finished.
When digging deeper into the matter, it looks like there was an insider issue. Logan Paul claimed the project’s core developer fled away with the source code. The dev, on the other hand, claimed that Paul failed to pay the developer, so he refused to finish the project.
Logan Paul and his interest in NFT may not be a perfect match, or if impossible a failure.
The influencer attempted to market another failed project – Dink Doink, a meme token. It was later discovered that Paul helped create the meme character.
Is There A Silver Lining For NFT In 2023?
Throughout 2022, a bear market has dominated the cryptocurrency industry.
As a result, NFT sales have fallen, and several collections have fallen apart. A similar situation occurred with public figures who earlier produced their own NFT collections to capitalize on the hoopla.
However, analysts expect that Web3 will play a role in the development of blockchain games, NFTs, and DAOs, as well as at the end of the crypto winter.
According to experts, established businesses that use Web3 can help end the cold sooner, while blockchain games will increase crypto appeal.
When we look ahead to 2023, the favorable market conditions and upward momentum of cryptocurrencies are in question.
If the market is bullish, there is a good chance that the NFT and Metaverse industries will acquire traction and see a rebound.
This may also serve to push up the price of huge NFT collections, which will in turn entice further potential artists to create new collections and additional corporations to come up with new advancements for the metaverse.
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Author: Nicholas Say