A proposed class-action lawsuit is filed against celebrity YouTuber Logan Paul and CryptoZoo (CZ) after the rampant scam allegations.
Plaintiff Don Holland filed the lawsuit on behalf of himself and all other similarly situated individuals at the District Court for the Western District of Texas.
Along with Paul and CryptoZoo, Danielle Strobel, Jeffrey Levin, Eddie Ibanez, Jake Greenbaum aka Crypto King, and Ophir Bentov aka Ben Roth are also named as defendants in the lawsuit submitted by attorneys from Ellzey & Associates and Attorney Tom and Associates.
“Defendants promoted CryptoZoo Inc.’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. Unbeknownst to the customers, the game did not work or never existed, and Defendants manipulated the digital currency market for Zoo Tokens to their advantage,” the lawsuit says.
Holland claimed that Paul and other executives at CryptoZoo performed a “rug pull” by promising buyers of the NFTs exclusive access to crypto assets among other benefits, but afterward abandoned the business and took the payments.
The filing notes “Mr. Paul stated he would no longer be the scapegoat for anyone’s financial decisions in denying responsibility for Plaintiff and the CryptoZoo community’s losses.”
According to Holland, he is just one of many users who bought Zoo Tokens from the Defendants and suffered losses as a result of the Defendants’ manipulation of the Zoo Token market.
In addition to any damages that may be awarded under the plaintiff’s causes of action, Holland demands past and future compensation for the defendants’ deceptive activities.
“The wrong done to Plaintiff by Defendants was attended by fraudulent, malicious, intentional, willful, wanton, or reckless conduct that evidenced a conscious disregard for Plaintiff’s rights. Therefore, Plaintiff seeks punitive damages in an amount to be proven at trial,” reads filing.
Last month, Logan Paul responded to crypto investigator Stephen “Coffeezilla” Findeisen on the scam allegations revolving around CryptoZoo. Logan refuted every accusation, claiming that Crypto Zoo was created by a group of con artists and criminals that he unknowingly employed.
Later, Logan Paul backtracked from the threats of a defamation lawsuit against Coffeezilla over the latter’s CryptoZoo scam allegations. Logan Paul stated that he would be taking accountability and is “coming forward with a plan” for the project in the near future, in a post on the CryptoZoo Discord server.
